Federal Taxation 2024 Individuals, 37e Franklin Solution Manual.pdf (46)

C:3-66 Page 2

Form 2220 (2022)

Part IV

Figuring the Penalty (a)

(b)

19

Enter the date of payment or the 15th day of the 4th month after the close of the tax year, whichever is earlier. (C corporations with tax years ending June 30 and S corporations: Use 3rd month instead of 4th month.Form 990-PF and Form 990-T filers: Use 5th month instead of 4th month.) See instructions . . . . . .

19

20

Number of days from due date of installment on line 9 to the date shown on line 19 . . . . . . . . . . . . . . .

20

61

92

Number of days on line 20 after 4/15/2022 and before 7/1/2022

21

61

15

21

Number of days on line 21 365 × 4% (0.04)

22

Underpayment on line 17 ×

23

Number of days on line 20 after 6/30/2022 and before 10/1/2022

23

24

Number of365 days on line 23 × 5% (0.05) Underpayment on line 17 × Number of days on line 20 after 9/30/2022 and before 1/1/2023

24

25

22

(c)

6/15/22 9/15/22 12/15/22 4/15/23

$

187

$

$

150

$

77 962

91

26

Underpayment on line 17 ×

27

Number of days on line 20 after 12/31/2022 and before 4/1/2023

15 $

173

Underpayment on line 17 ×

29

Number of days on line 20 after 3/31/2023 and before 7/1/2023

76

Underpayment on line 17 ×

31

Number of days on line 20 after 6/30/2023 and before 10/1/2023

33

Number of days on line 20 after 9/30/2023 and before 1/1/2024

$

1,053

$

$

$

$

$

$

$

$

$

$

$

$

$

$

36

$

$

$

$

37

$

$1,112

$

Underpayment on line 17 ×

35

Number of days on line 20 after 12/31/2023 and before 3/16/2024

36

Underpayment on line 17 ×

37

Add lines 22, 24, 26, 28, 30, 32, 34, and 36

38

Penalty. Add columns (a) through (d) of line 37. Enter the total here and on Form 1120, line 34; or the comparable line for other income tax returns. . . . . . . . . . . . . . . . . . . . . . . . .

34

.

.

.

223

35

Number of days on line 35 366 × *% .

1,335 15

33

34

.

203 90

$

32

Number of days on line 33 365 × *%

.

$

31

Number of days on line 31 365 × *%

Underpayment on line 17 ×

$

$

28

30

32

$

16

29

Number of days on line 29 365 × *%

30

$

27

Number of days on line 27 365 × 7% (0.07)

28

26

121 $

$

25 Number of days on line 25 365 × 6% (0.06)

(d)

.

187

1,226

$

1,761 4,286

$ *Use the penalty interest rate for each calendar quarter, which the IRS will determine during the first month in the preceding quarter.

These rates are published quarterly in an IRS News Release and in a revenue ruling in the Internal Revenue Bulletin. To obtain this information on the Internet, access the IRS website at www.irs.gov. You can also call 1-800-829-4933 to get interest rate information.

*Assumes rate on Line 30 remains at 7%.

38

Form 2220 (2022)

For examC:TRP-17 and test prep, contact .. excellentessaywriters@gmail.com

C:3-66 Form

Depreciation and Amortization

4562

Name(s) shown on return

1 2 3 4 5

7 8 9 10 11 12 13

Melodic Musical Sales, Inc.

Attachment Sequence No. 179

Business or activity to which this form relates

Identifying number

Retail Sales

XX-2024022

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . . .

Total cost of section 179 property placed in service (see instructions) . . . . . . . .

Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . .

Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . .

Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . .

6

20 22

Attach to your tax return.

Go to www.irs.gov/Form4562 for instructions and the latest information.

Department of the Treasury Internal Revenue Service

Part I

OMB No. 1545-0172

(Including Information on Listed Property)

(a) Description of property

Equipment

. . . .

. . . .

. . . .

.

.

.

1 2 3 4 5

600,000* 600,000 2,700,000 -0600,000

(c) Elected cost

(b) Cost (business use only)

600,000

600,000

Listed property. Enter the amount from line 29 . . . . . . . . .

7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 . . . . . .

9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . .

10 Carryover of disallowed deduction from line 13 of your 2021 Form 4562. . . . . . . . . . .

11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 12 Section 179 expense deduction. Add lines 9 and 10, but don’t enter more than line 11 . . . . . .

Carryover of disallowed deduction to 2023. Add lines 9 and 10, less line 12 Note: Don’t use Part II or Part III below for listed property. Instead, use Part V.

Part II

.

600,000 600,000

. 13

Special Depreciation Allowance and Other Depreciation (Don’t include listed property. See instructions.)

14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions. . . . . . . . . . . . . . . . . . . . .

15 Property subject to section 168(f)(1) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . depreciation (including ACRS) . .

16 Other

Part III

600,000 600,000

. . .

. . .

14 15 16

MACRS Depreciation (Don’t include listed property. See instructions.)

Section A . . . . . .

17 MACRS deductions for assets placed in service in tax years beginning before 2022 .

17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . .

Section B—Assets Placed in Service During 2022 Tax Year Using the General Depreciation System (a) C l assification of property

(b) Month and year (c) Basis for depreciation (business/investment use (d) Recovery placed in period service only—see instructions)

19a 3-year property b 5-year property c 7-year property d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental

(e) Convention

(f) Method

148,543

(g) Depreciation deduction

25 yrs.

27.5 yrs.

27.5 yrs.

39 yrs.

S/L S/L M S/L property M S/L i Nonresidential real M S/L M property Section C— Assets Place d in Service During 2 022 Tax Yea r Using the Alt e rnative Depreciatio n System M M 20a Class life S/L M b 12-year 12 yrs.

S/L M c 30-year 30 yrs.

MM S/L d 40-year 40 yrs.

MM S/L Part IV Summary (See instructions.)

21 Listed property. Enter amount from line 28 . . . . . . . . . . . . . . . . . . . .

22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.Enter . here and on the appropriate lines of your return. Partnerships and S corporations—see instructions 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs . . . . . . . . .

23 For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 12906N

21 22

748,543 Form

4562 (2022)

*Per the worksheet in the instructions for Form 4562, Line 1 should be the lesser of the maximum Sec. 179 deduction ($1,080,000 in 2022) or the total cost of Sec. 179 property.

C:TRP-18 ..

C:3-66

4797

Form

Department of the Treasury Internal Revenue Service

Sales of Business Property

OMB No. 1545-0184

(Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2))

20 22

Attach to your tax return.

Go to www.irs.gov/Form4797 for instructions and the latest information.

Attachment Sequence No. 27

Name(s) shown on return

Identifying number

Melodic Musical Sales, Inc. 1a

XX-2024022

Enter the gross proceeds from sales or exchanges reported to you for 2022 on Form(s) 1099-B or 1099-S (or substitute statement) that you are including on line 2, 10, or 20. See instructions . . . . . . . . . .

1a

b

Enter the total amount of gain that you are including on lines 2, 10, and 24 due to the partial dispositions of MACRS assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1b

c

Enter the total amount of loss that you are including on lines 2 and 10 due to the partial dispositions of MACRS assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1c

Part I

Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft—Most Property Held More Than 1 Year (see instructions) (a) Description of property

2

(b) Date acquired (mo., day, yr.)

(c) Date sold (mo., day, yr.)

(e) Depreciation allowed or allowable since acquisition

(d) Gross sales price

3 4 5 6 7

Gain, if any, from Form 4684, line 39 .Section . . 1231 . . gain . from . . installment . . . . . . . . .. sales from Form 6252, line 26 or 37. . . . . . . . .. . . . . . ..

Section 1231 gain or (loss) from like-kind exchanges from Form 8824. . . . . . .. .

Gain, if any, from line 32, from other than casualty or theft . . .

Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows .

. . . . .

3 4 5 6 7

8

Partnerships and S corporations. Report the gain or (loss) following the instructions for Form 1065, Schedule K, line 10, or Form 1120-S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below.

Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you didn’t have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule D filed with your return and skip lines 8, 9, 11, and 12 below.

Nonrecaptured net section 1231 losses from prior years. See instructions . . . . . . . . . . . .

8

Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule D filed with your return. See instructions. . . . . . . . . . . . . .

9

9

Part II

. . . . .

(f) Cost or other basis, plus improvements and expense of sale

. . . . .

. . . . .

30,000 30,000

Ordinary Gains and Losses (see instructions)

10

Ordinary gains and losses n o t included on lin e s 11 through 16 (i n c lude property hel d 1 year or less):

11 12 13 14 15 16 17

Loss, if any, from line 7 Gain, . . if. any, . from . . line . 7. or. amount . . . . . from line 8, if applicable. . . . . . . .

Gain, if any, from line 31. Net . gain . .or .(loss) . from . . Form . . 4684, . lines . . .

31 and 38a. Ordinary gain from installment sales from .Form 6252, line 25 or 36 Ordinary gain or (loss) from like-kind exchanges from . .

Form 8824 . . .

Combine lines 10 through 16. . . . . . . . . . .

18

. . . . .

(g) Gain or (loss) Subtract (f) from the sum of (d) and (e)

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

11 ( 12 13 14 15 16 17

)

156,288

156,288

For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below. For individual returns, complete lines a and b below.

If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter the loss a from income-producing property on Schedule A (Form 1040), line 16. (Do not include any loss on property used as an .

18a

b Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Schedule 1 (Form 1040), Part I, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 13086I

18b

employee.) Identify as from “Form 4797, line 18a.” See instructions.

.

.

C:TRP-19 ..

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.

.

.

.

.

.

.

.

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Form 4797 (2022)

C:3-66 Page 2

Form 4797 (2022)

Part III 19

Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255 (see instructions) (b) Date acquired (mo., day, yr.)

(a) Description of section 1245, 1250, 1252, 1254, or 1255 property:

Property A These columns relate to the properties on lines 19A through 19D.

20 21 22 23 24 25

26

01/02/19

10/16/22

Property C

Property D

Equipment 1

A B C D

Gross sales price Note: ( See line 1a before completing. ).

Cost or other basis plus expense of sale. . . . .

Depreciation (or depletion) allowed or allowable. . . . . .

Adjusted basis. Subtract line 22 from line 21.

Total gain. Subtract line 23 from line 20. . .

If section 1245 property: a Depreciation allowed or allowable from line 22. . b Enter the smaller of line 24 or 25a . . .

20 21 22 23

.

.

24

. .

. .

25a 25b

280,000 250,000 156,288 93,712

Property B

(c) Date sold (mo., day, yr.)

186,288 156,288 156,288

If straight line depreciation was used, If section 1250 property: enter-0- on line 26g, except for a corporation subject to section 291. .

26a

b Applicable percentage multiplied by the smaller of line 24 or line 26a. See instructions. . . . . . . .

26b

a Additional depreciation after 1975. See instructions

c Subtract line 26a from line 24. If residential rental property orline 24 isn’t more than line 26a, skip lines 26d and 26e 26c 26d . d Additional depreciation after 1969 and before 1976. . e .Enter the smaller of line 26c or 26d . . . .

26e . f . Section 291 amount (corporations only). . .

26f . g .Add lines 26b, 26e, and 26f 26g . . . . . .

27

If section 1252 property: Skip this section if you didn’t dispose of farmland or if this form is being completed for apartnership. a Soil, water, and land clearing expenses . . . . .

27a b Line 27a multiplied by applicable percentage. See instructions 27b c Enter the smaller of line 24 or 27b

28

. . . . . .

If section 1254 property: Intangible drilling and development costs, expenditures a for development of mines and other natural deposits, mining exploration costs, and depletion. See instructions b Enter the smaller of line 24 or 28a

29

.

.

.

.

If section 1255 property: a Applicable percentage of payments excluded from income under section 126. See instructions... of line 24 or 29a. See instructions b Enter the smaller

.

27c

.

28a 28b

. .

29a 29b

Summary of Part III Gains. Complete property columns A through D through line 29b before going to line 30.

30 31

Total gains for all properties. Add property columns A through D, line 24 . . . . . . .

Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13

. .

30 31

186,288 156,288

32

Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from other than casualty or theft on Form 4797, line 6 . . . . . . . . . . . . . . . . . . . .

32

30,000

Part IV

. .

. .

. .

. .

. .

Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less (see instructions) (a) Section 179

33 34 35

Section 179 expense deduction or depreciation allowable in prior years......

Recomputed depreciation. See instructions..............

Recapture amount. Subtract line 34 from line 33. See the instructions for where to report

. . .

. . .

(b) Section 280F(b)(2)

33 34 35 Form 4797 (2022)

C:TRP-20 ..

C:3-66 Melodic Musical Sales, Inc. XX-2024022 2022 Form 1120 Page 1, Line 17 - Taxes and licenses: Payroll taxes State income tax Total

$ 62,000 75,000 $137,000

Page 1, Line 26 - Other deductions: General insurance Utilities Legal and accounting fees Total

$ 55,000 72,000 50,000 $177,000

Schedule L, Line 14 - Other assets: Cash surrender value Schedule L, Line 18 - Other current liabilities:

Beginning

Ending

$60,000

$ 80,000

Beginning

Accrued payroll taxes Accrued state income taxes Accrued federal income taxes Total

$ 14,880 4,500 2,500 $ 21,880

Schedule L, Line 21 - Other liabilities:

Beginning

Ending $ 18,600 7,500 77,361 $103,461 Ending

Net deferred tax liability

$167,593

$57,394

Schedule M-1, Line 4 - Income subject to tax not recorded on books this year: The gain difference reported here results from the difference between the accumulated tax depreciation ($156,288) and book depreciation ($75,000) on the equipment sold and the resultant difference in book basis and tax basis.

Schedule M-1, Line 5 - Expenses recorded on books, not deducted: Premiums - Officers’ life insurance $30,000 Bad debt expense ($45,000 – $40,000) 5,000 Total $35,000 Schedule M-1, Line 8a - Depreciation: $600,000 Sec. 179 expense + $148,543 MACRS – $152,500 book depreciation Form 4562, Part III, Line 17 - MACRS deductions for property placed in service before 2022: Building ($2,000,000 ×0.02564) $ 51,280 Equipment 1 ($250,000 × 0.1249 x 0.5) 15,613 62,450 Equipment 2 ($500,000 × 0.1249) 19,200 Trucks ($100,000 × 0.192) Total C:TRP-21 $148,543 ..

C:3-67

U.S. Corporation Income Tax Return

1120

Form Department of the Treasury Internal Revenue Service A Check if: (attach Form 851)

.

dated return. . .

2 Personal holding co. (attach Sch. PH) . .

Personal service corp.

3 (see instructions)..

Schedule M-3 attached

4

PaymentsCredits, and Tax, Refundable

Deductions (See instructions for limitations on deductions.)

Income

1a b c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29a bc 30 31 32 33 34 35 36 37

Sign Here

, 20

21

Go to www.irs.gov/Form1120 for instructions and the latest information.

1a Consolidated return b Life/nonlife consoli-

OMB No. 1545-0123

, 2021, ending

For calendar year 2021 or tax year beginning

TYPE OR PRINT

Name

B Employer identification number

Number, street, and room or suite no. If a P.O. box, see instructions.

C Date incorporated

City or town, state or province, country, and ZIP or foreign postal code

D Total assets (see instructions)

✓E Check if: (1)✓Initial return Final return (2)

Gross . receipts or sales . . . . . . . . . . . . .

Returns . and allowances. . . . . . . . . . . . .

Balance. .

Subtract line 1b from line 1a . . . . . . . . .

Cost . of goods sold (attach Form 1125-A). . . . . . . .

Gross . profit. Subtract line 2 from line 1c . . . . . . . .

Dividends . and inclusions (Schedule C, line 23) . . . . . . . . . .

Interest . . . . . . . . . . . . . . .Gross rents . . . . . . . . . . . . . . . . .Gross royalties . . . . . . . . . . . . . . .

Capital gain net income (attach Schedule D (Form 1120)) . . . .

Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)

2021

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

Name change

(4)

1a 1b . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other income (see instructions—attach statement) . . . . . . . . . . . . . . . . . . .

Total income. Add lines 3 through 10. . . . . . . . . . . . . . . . . . .

Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . . . .

Repairs and maintenance . . . . . . . . . . . . . . . . . . . .

Bad debts. . . . . . . . . . . . . . . . . . . . . . . . .

Rents . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxes and licenses . . . . . . . . . . . . . . . . . . . . . .

Interest (see instructions) . . . . . . . . . . . . . . .Form . 1125-A . . .or elsewhere . . . not . claimed . . on Charitable contributions . 4562 Depreciation from Form on return (attach Form 4562). . . . . .

Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pension, profit-sharing, etc., plans . .

Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reserved for future use. . . .

Other deductions (attach statement) $20,000. . . . . . .

Taxable incomeAdd before net loss and special deductions. Subtract line 27 from line 11.

Total deductions. lines 12operating through 26 . deduction . . . . . . . . . . . . . . . .

Net operating loss deduction (see instructions) . . . . . .

Special deductions (Schedule C, line 24). . . . . . . . . . . . . . . .

Add lines 29a and 29b . . . . .

Taxable income. Subtract line 29c from line 28. See instructions Total tax(Schedule J, Part I, line 11) . . . .

Reserved for future use. . . .

. .

. .

. .

. .

. . .

. . .

. . .

. . . . . . .

16,631,250

$ (3)

. . . . . . .

. . . . . . . .

. . . . . . . .

29a 29b . . . . . . . . . . . . . . . . . .

Total payments and credits (Schedule J, Part III, line 23) Estimated tax penalty. See instructions. Check if Form 2220 is attached Amount owed. If line 33 is smaller than the total of lines 31 and 34, enter amount owed Overpayment. If line 33 is larger than the total of lines 31 and 34, enter amount overpaid Enter amount from line 36 you want: Credited to 2022 estimated tax

. . . . . .

. . . . . . . .

. . . . . . . .

. . . . .

. . . . .

. . . .

Refunded

Address change

1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

3,875,000 5,900,000 (850,000)

29c 30 31 32 33 34 35 36

(875,000)

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

May the IRS discuss this return with the preparer shown below?

Date Print/Type preparer’s name

Paid Preparer Use Only Firm’s name

Preparer's signature

See instructions.Yes

Title Date

Check if self-employed

No

PTIN

Firm’s EIN Phone no.

Firm’s address

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11450Q

C:TRP-22 ..

Form 1120 (2021)

C:3-67 Page 6

Form 1120 (2021)

Schedule L

Balance Sheets per Books

Beginning of tax year (a)

Assets 1 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15

Cash .......... Trade notes and accounts . receivable . Less allowance for bad debts . ... Inventories ......... U.S. government . obligations ... Tax-exempt securities (see . instructions) . .

. . . . . .

(

Other current assets (attach statement) .

Net. DTA* Loans to shareholders ..... Mortgage and . . real estate loans ... Other investments . . (attach statement) . Buildings and other . . depreciable assets Less accumulated . . ( depreciation ... Depletable assets ....... . .

Less accumulated depletion .... Land . . ( (net of any amortization) ... Intangible . . assets (amortizable only) . Less . accumulated amortization ... Other . assets (attach statement) ... .

Total assets ........ . .

. . . . .

(

End of tax year

(b)

(d)

(c)

500,000

2,000,000 ) 250,000

)

(

)

(

)

(

)

)

(

)

1,750,000 4,000,000 50,000 131,250 1,000,000 9,200,000

10,000,000 800,000 )

16,631,250

Liabilities and Shareholders’ Equity 16 17 18 19 20 21 22

Accounts payable .

.

.

.

.

.

.

2,610,000

.

.

Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . . .

Loans from shareholders . . . . .

Mortgages, notes, bonds payable in 1 year or more

8,500,000

Other liabilities (attach statement) . . . . a Preferred stock . . . .

Capital stock: b Common stock . . . . . . . .

Additional paid-in capital . . .

Retained earnings—Appropriated (attach statement)

23 24 25 26 27 28

6,000,000

6,000,000 (478,750)

Retained earnings—Unappropriated . . .

Adjustments to shareholders’ equity (attach statement) Less cost of treasury stock . . . .

Total liabilities and shareholders’ equity

Schedule M-1

. .

(

. .

)

(

Reconciliation of Income (Loss) per Books With Income per Return

)

16,631,250

Note: The corporation may be required to file Schedule M-3. See instructions.

1 2 3

Net income (loss) per books .Se.e S.che.dul.e M.-3

4

Income subject to tax not recorded on books this year (itemize):

5

Expenses recorded on books this year not deducted on this return (itemize): Depreciation . . . . $ Charitable contributions . $ Travel and entertainment . $

Federal income tax per books . . . .

Excess of capital losses over capital gains

7

. .

Tax-exempt interest

8

a b c 6

Add lines 1 through 5 .

Schedule M-2 1 2 3

4

.

.

.

.

.

.

Income recorded on books this year not included on this return (itemize):

9 10

.

$

Deductions on this return not charged against book income this year (itemize): a Depreciation . . $ b Charitable contributions$

Add lines 7 and 8 . . . . . .

Income (page 1, line 28)—line 6 less line 9

Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25)

Balance at beginning of year Net income (loss) per books .

Other increases (itemize):

Add lines 1, 2, and 3 .

.

.

. .

.

. .

.

. .

.

. .

.

. .

.

-0(478,750)

(478,750)

5

6 7 8

* $257,250 DTA – $126,000 DTL. C:TRP-23 ..

a Distributions: Cash b Stock c Property.

Other decreases (itemize):. .

. . .

. . .

. . .

Add lines 5 and 6 . . . . .

Balance at end of year (line 4 less line 7)

-0(478,750)

Form 1120 (2021)

C:3-67 SCHEDULE M-3 (Form 1120) (Rev. December 2019) Department of the Treasury Internal Revenue Service

Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More

Employer identification number

Name of corporation (common parent, if consolidated return)

Permtemp Corporation

Check applicable box(es):

XX-1234567

(1) ✓Non-consolidated return

(2)

Consolidated return (Form 1120 only)

Mixed 1120/L/PC group

(4)

Dormant subsidiaries schedule attached

(3)

Part I

OMB No. 1545-0123

Attach to Form 1120 or 1120-C. Go to www.irs.gov/Form1120 for instructions and the latest information.

Financial Information and Net Income (Loss) Reconciliation (see instructions)

1a

Did the corporation file SEC Form 10-K for its income statement period ending with or within this tax year?

Yes.Skip lines 1b and 1c and complete lines 2a through 11 with respect to that SEC Form 10-K. ✓No. Go to line 1b. See instructions if multiple non-tax-basis income statements are prepared. b Did the corporation prepare a certified audited non-tax-basis income statement for that period?

Yes.Skip line 1c and complete lines 2a through 11 with respect to that income statement. ✓No. Go to line 1c. c Did the corporation prepare a non-tax-basis income statement for that period?

✓Yes.Complete lines 2a through 11 with respect to that income statement.

No. Skip lines 2a through 3c and enter the corporation’s net income (loss) per its books and records on line 4a.

Ending 2a Enter the income statement period: Beginning b Has the corporation’s income statement been restated for the income statement period on line 2a?

Yes.(If “Yes,” attach an explanation and the amount of each item restated.)

12/31/2021

01/01/2021

✓No.

c

Has the corporation’s income statement been restated for any of the five income statement periods immediately preceding the period on line 2a?

Yes.(If “Yes,” attach an explanation and the amount of each item restated.)

✓No. 3a

Is any of the corporation’s voting common stock publicly traded?

Yes.

✓No.

If “No,” go to line 4a. b Enter the symbol of the corporation’s primary U.S. publicly traded voting common stock . . . . . . . . . . . . . . . . . . . . . . . . . . c Enter the nine-digit CUSIP number of the corporation’s primary publicly traded voting common stock . . . . . . . . . . . . . . . . . . . . . . .

Worldwide consolidated net income (loss) from income statement source identified in Part I, line 1 4a Indicate accounting standard used for line 4a (see instructions): b (1)✓GAAP (2) IFRS (3) Statutory (4) Tax-basis (5) Other (specify) 5a Net income from nonincludible foreign entities (attach statement) . . . . . . . . . . . . b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) . . .

6a Net income from nonincludible U.S. entities (attach statement) . . . . . . . . . . . . loss from nonincludible U.S. entities (attach statement and enter as a positive amount) . b Net .

7a . Net income (loss) of other includible foreign disregarded entities (attach statement) . . . .. . b .Net income (loss) of other includible U.S. disregarded entities (attach statement) . . .. . c Net income (loss) of other includible entities (attach statement) . . . . . .

.

4a

. . . . . . .

5a ( 5b 6a ( 6b 7a 7b 7c

(478,750) ) )

Adjustment to eliminations of transactions between includible entities and nonincludible entities (attach statement) . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .

8 Adjustment to reconcile income statement period to tax year (attach statement) .. . . . . .

9 9 . .. . . . . .

10a Intercompany dividend adjustments to reconcile to line 11 (attach statement) 10a Other statutory accounting adjustments to reconcile to line 11 (attach statement) . . . . . . . b 10b .. . . . . . c Other adjustments to reconcile to amount on line 11 (attach statement) . . .

10c Combine lines 4 through 10 .

11 11 Net income (loss) per income statement of includible corporations.

Note: Part I, line 11, must equal Part II, line 30, column (a) or Schedule M-1, line 1 (see instructions).

Enter the total amount (not just the corporation’s share) of the assets and liabilities of all entities included or removed on the 12 following lines.

Total Assets Total Liabilities 8

(478,750)

a b c d

Included on Part I, line 4 .

Removed on Part I, line 5 .

Removed on Part I, line 6 .

Included on Part I, line 7 .

. . . .

. . . .

. . . .

. . . .

. . . .

. . . .

16,231,250

For Paperwork Reduction Act Notice, see the Instructions for Form 1120.

C:TRP-24 ..

11,110,000

Cat. No. 37961C

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:3-67 Page 2

Schedule M-3 (Form 1120) (Rev. 12-2019) Name of corporation (common parent, if consolidated return)

Permtemp Corporation

Check applicable box(es): (1)

Consolidated group

Check if a sub-consolidated: (6)

1120 group

(7)

(2)

Employer identification number

Parent corp

(3)

Consolidated eliminations

(4)

(5)

Mixed 1120/L/PC group

1120 eliminations Employer identification number

Name of subsidiary (if consolidated return)

Part II

XX-1234567

Subsidiary corp

Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return (see instructions) Income (Loss) Items

(Attach statements for lines 1 through 12) 1 Income (loss) from equity method foreign corporations 2 Gross foreign dividends not previously taxed . . .

3 Subpart F, QEF, and similar income inclusions . .

4 Gross-up . . for foreign taxes deemed paid . .

5 Gross . . foreign distributions previously taxed .

6 Income (loss) from equity method U.S. corporations 7 U.S. dividends not eliminated in tax consolidation 8 Minority interest for includible corporations . . .

9 10 Income (loss) from U.S. partnerships . . . . . . . . .

11 Income (loss) from foreign partnerships Income (loss) from other pass-through entities . .

12 . . .

13 Items relating to reportable transactions .

Interest income (see instructions) 14 .T-.E i.nt.ere.st.

15 .Total accrual to cash adjustment . . . . . . transactions . . . . . . . .

16 Hedging .

17 Mark-to-market income (loss) . . . . . . . . . .

18 Cost of goods sold (see instructions) ..

19 . Sale versus lease (for sellers and/or lessors) . .

20 .Section 481(a) adjustments . . . . . . .

21 .Unearned/deferred revenue . . . . . . .

22 Income . recognition from long-term contracts .

(a) Income (Loss) per Income Statement

(b) Temporary

(c) Permanent

(d) Income (Loss) perTax Return

50,000

50,000

(15,000)

15,000

-015,000,000)

(

.(15,000,000)

Original issue discount and other imputed interest .

23a Income statement gain/loss on sale, exchange, abandonment, worthlessness, or other disposition of assets other than inventory and pass-through entities b Gross capital gains from Schedule D, excluding amounts from pass-through entities . . . . . c Gross capital losses from Schedule D, excluding amounts from pass-through entities, abandonment losses, and worthless stock losses . . . . . d Net gain/loss reported on Form 4797, line 17, excluding amounts from pass-through entities, abandonment losses, and worthless stock losses e Abandonment losses . . . . . . . . . . f Worthless stock losses (attach statement) . . . . g Other gain/loss on disposition of assets other than inventory 24 Capital loss limitation and carryforward used . . .

25 26Total income (loss) items.Combine lines 1 through 25 27Total expense/deduction items (from Part III, line 39) . . . . . .

28 29a Mixed groups, see instructions. All others, combine lines 26 through 28 . . . . . . . . . . . . b PC insurance subgroup reconciliation totals . . . c Life insurance subgroup reconciliation totals .

*.

(14,935,000) (250,000) (1,688,750) (250,000) 16,145,000 (478,750) (478,750)

(250,000)

(15,000) (106,250) (121,250) (121,250)

30 Reconciliation totals.Combine lines 29a through 29c Note: Line 30, column (a), must equal Part I, line 11, and column (d) must equal Form 1120, page 1, line 28.

*Sales $20,000,000 - Other expenses $3,855,000 C:TRP-25 ..

(14,950,000) (2,045,000) 16,145,000 (850,000) (850,000)

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:3-67 Page 3

Schedule M-3 (Form 1120) (Rev. 12-2019)

Employer identification number

Name of corporation (common parent, if consolidated return)

Permtemp Corporation

Check applicable box(es): (1)

Consolidated group

Check if a sub-consolidated: (6)

1120 group

(7)

(2)

Parent corp

(3)

Consolidated eliminations

(4)

(5)

1120 eliminations Employer identification number

Name of subsidiary (if consolidated return)

Part III

XX-1234567 Mixed 1120/L/PC group

Subsidiary corp

Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return—Expense/Deduction Items (see instructions) (a) Expense per Income Statement

Expense/Deduction Items 1 2 3 4 5

U.S. current income tax expense . . . . . . .

U.S. deferred income tax expense . . . . . .

State and local current income tax expense . . .

State and local deferred income tax expense . . .

Foreign current income tax expense (other than foreign withholding taxes) . . . . . . . . . . . .

6 Foreign deferred income tax expense . . . . . . . .

7 .Foreign withholding taxes . . . . .

8 .Interest expense (see instructions) . . . . .

9 .Stock option expense . . . . . . . . .

10 . Other equity-based compensation . . . . .

11 .Meals and entertainment . . . . . . . .

12 .Fines and penalties . . . . . .

13 Judgments, damages, awards, and similar costs . . .

14 Parachute payments . . . . . . . . . . .

15 Compensation with section 162(m) limitation . . .

16 Pension . and profit-sharing . . . . . . . .

17 Other . post-retirement benefits . . . . . .

18 Deferred . . . . . compensation . .

19 Charitable contribution of cash and tangible property 20 Charitable contribution of intangible property . .

21 Charitable contribution limitation/carryforward . .

22 Domestic production activities deduction (see instructions) . . . . . . . . . . . . . .

23 Current year acquisition or reorganization investment banking fees . . . . . . . . .

24 Current year acquisition or reorganization legal and accounting fees . . . . . . . . . . . .

Current year acquisition/reorganization other costs .

25 . . . . .

26 Amortization/impairment of goodwill 27 Amortization of acquisition, reorganization, and start-up costs . . . . . . . . . . . . . . .

28 Other amortization or impairment write-offs . . . . . . . . . . . . . . .

29 Reserved . . . . . . . . . . . . . .

30 Depletion . . . . . . . . . . . . .

31 Depreciation debt expense . . . . . . . . . . .

32 Bad owned life insurance premiums . . .

33 Corporate 34 Purchase versus lease (for purchasers and/or lessees) 35 Research and development costs . . . . . .

36 Section 118 exclusion (attach statement) . . . .

37 Section 162(r)—FDIC premiums paid by certain large financial institutions (see instructions) . .

.

38 Other expense/deduction items with differences (attach statement) . . . . . . . . . .

.

39 Total expense/deduction items. Combine lines 1 through 38. Enter here and on Part II, line 27, reporting positive amounts as negative and negative amounts as positive . . . . . . . .

(b) Temporary Difference

(131,250)

(c) Permanent Difference

(d) Deduction per Tax Return

131,250

475,000

475,000

45,000

(25,000)

20,000

100,000

(100,000)

-0-

800,000 400,000

600,000 (250,000)

1,400,000 150,000

1,688,750

250,000

106,250

2,045,000

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:TRP-26 ..

C:3-67 Permtemp Corporation Deferred Tax Accounting 2021 Deferred Tax Assets End of 2021 Net operating loss $ 875,000 Charitable contributions carryover* 100,000 Net accounts receivable** 250,000 Total deductible temporary difference $1,225,000 Times: Tax rate 0.21 Deferred tax asset $ 257,250 *Charitable contributions not deductible this year because of limitation **$2,000,000 tax basis – $1,750,000 book basis Deferred Tax Liability: Net fixed assets* Times: Tax rate Deferred tax liability *$9,200,000 book basis – $8,600,000 tax basis Journal Entry: Deferred tax asset Deferred tax liability Federal income tax benefit

$600,000 0.21 $126,000

257,250 126,000 131,250

Adjusted Income Statement (Partial): Net loss before federal income benefit Plus: Federal income tax benefit Net loss per books Effective tax rate [$(131,250)/$(610,000)]

$(610,000) 131,250 $(478,750) 21.516%

Tax Rate Reconciliation: Statutory tax rate Nondeductible M&E expense [$25,000/($(610,000) × 21%)] Tax-exempt income [$(15,000)/$(610,000) × 21%] Dividends-received deduction [$(25,000)/$(610,000) × 21%] Effective tax rate

C:TRP-27 ..

21.000% (0.861)% 0.516% 0.861% 21.516%

C:3-67 Permtemp Corporation Deferred Tax Accounting 2021 Provision Reconciliation: Net loss before federal income taxes Permanent differences: Nondeductible M&E expense Tax-exempt income Dividends-received deduction Net loss after permanent differences Temporary differences: Bad debt expense Charitable contribution deduction Depreciation Net operating loss

$ (610,000) 25,000 (15,000) (25,000) $ (625,000) 250,000 100,000 (600,000) (875,000)

$

Adjusted Book Balance Sheet: Cash Accounts receivable Minus: Allowance for doubtful accounts Inventory Net deferred tax asset ($257,250 – $126,000) Fixed assets Minus: Accumulated depreciation Investment in corporate stock Investment in tax-exempt bonds Total assets Accounts payable Long-term debt Common stock Retained earnings Total liabilities and equity

$ $ 2,000,000 (250,000) $10,000,000 (800,000)

500,000 1,750,000 4,000,000 131,250

9,200,000 1,000,000 50,000 $16,631,250 $ 2,610,000 8,500,000 6,000,000 (478,750) $16,631,250

C:TRP-28 ..

C:3-67

U.S. Corporation Income Tax Return

1120

Form Department of the Treasury Internal Revenue Service A Check if: (attach Form 851)

.

dated return. . .

2 Personal holding co. . (attach Sch. PH) .

Personal service corp.

3 (see instructions)..

Schedule M-3 attached

4

PaymentsCredits, and Tax, Refundable

Deductions (See instructions for limitations on deductions.)

Income

1a b c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29a bc

20 22

TYPE OR PRINT

B Employer identification number

Permtemp Corporation

XX-1234567

Number, street, and room or suite no. If a P.O. box, see instructions.

C Date incorporated

City or town, state or province, country, and ZIP or foreign postal code

D Total assets (see instructions)

✓E Check if: (1) Initial return

2021

20,425,000

$

(4) Final return

(2)

. . . . . . . . . .

Gross receipts or sales . . . . . . . . . . . . . .Returns and allowances . . . . .Balance. Subtract line 1b from line 1a . . . . . . . . .Cost of goods sold (attach Form 1125-A). . . . . . . . .Gross profit. Subtract line 2 from line 1c . . . . . . . . .Dividends and inclusions (Schedule C, line 23) . . . . . . . . . .

Interest . . . . . . . . . . . . . . .Gross rents . . . . . . . . . . . . . . . . .Gross royalties . . . . . . . . . . . . . . .

Capital gain net income (attach Schedule D (Form 1120)) . . . .

Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)

Name change

(3)

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

33,000,000

1a 1b

Other $4,675,000 + meals $20,000.

Net operating loss deduction (see instructions) . . . .

Special deductions (Schedule C, line 24). . . . . .

Add lines 29a and 29b . . . . .

. . .

. . .

. . .

. . .

. . . . . . .

. . . . . . .

. . . . . . . .

. . . . . . . .

. . . . . . . .

29a 29b . . . . . .

Taxable income. Subtract line 29c from line 28. See instructions

34 35 36 37

Estimated tax penalty. See instructions. Check if Form 2220 is attached Amount owed. If line 33 is smaller than the total of lines 31 and 34, enter amount owed Overpayment. If line 33 is larger than the total of lines 31 and 34, enter amount overpaid Enter amount from line 36 you want: Credited to 2023 estimated tax

Total tax(Schedule J, Part I, line 11) . . . . . . . . . . . .

Reserved for future use . . . .

Total payments and credits (Schedule J, Part III, line 23)

. . .

. . .

. . .

. . . . . .

. . . . . . . .

. . . . . . . .

875,000 27,500

. . . . . . . . . . . . . . . . . . . . . . . .

Refunded

Address change

1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other income (see instructions—attach statement) . . . . . . . . . . . . . . . . . . .

Total income. Add lines 3 through 10 . . . . . . . . . .

Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . .

Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . .

Repairs and maintenance . . . . . . . . . . . . . . . . . . . .

Bad debts. . . . . . . . . . . . . . . . . . . . . . . . .

Rents . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxes and licenses . . . . . . . . . . . . . . . . . . . . . .

Interest (see instructions) . . . . . . . . . . . . . . . .Form . 1125-A . . .or elsewhere . . not . claimed . . on Charitable contributions . 4562 Depreciation from Form on return (attach Form 4562). . . . . .

Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pension, profit-sharing, etc., plans . . . . .

Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reserved for future use . . . . . . . .

Other deductions (attach statement) Taxable income before net operating loss deduction and special deductions. Subtract line 27 .from . line 11.

Total deductions. Add lines 12 through 26 . . . . . . . . . . . . . . .

30 31 32 33

Sign Here

, 20

Go to www.irs.gov/Form1120 for instructions and the latest information.

Name

1a Consolidated return b Life/nonlife consoli-

OMB No. 1545-0123

, 2022, ending

For calendar year 2022 or tax year beginning

29c 30 31 32 33 34 35 36 37

33,000,000 22,000,000 11,000,000 55,000

11,055,000 425,000 455,000 140,000 2,450,000

4,695,000 8,165,000 2,890,000 902,500 1,987,500 417,375

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

May the IRS discuss this return with the preparer shown below?

Signature of officer Print/Type preparer’s name

Paid Preparer Use Only Firm’s name

Date Preparer’s signature

See instructions.Yes

Title Date

Check if self-employed

No

PTIN

Firm’s EIN Phone no.

Firm’s address

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11450Q

C:TRP-29 ..

Form 1120 (2022)

C:3-67 Page 6

Form 1120 (2022)

Schedule L

Balance Sheets per Books

Beginning of tax year (b) (a)

Assets 1

Cash Trade . . . notes . . and . . accounts . . . . receivable . . . . .

Less allowance for bad debts . . . . .

Inventories . . . . . . . .

End of tax year

2,000,000 2 5 0 , 0 0) 0 1,750,000 3 4,000,000 4 . . . .

U.S. government obligations 5 Tax-exempt securities (see instructions) 50,000 Other current assets (attach statement) Net DTAa 6 7 Loans to shareholders . . . . . . .

131,250 8 Mortgage and real estate loans . . . . .

Other investments (attach statement) . . .

9 Buildings and other depreciable assets . .

1,000,000 10a . . .

10,000,000 . . . ( 8 0 0 , 0 0 )0 9,200,000 Less accumulated depreciation . . b . . . ( ) 2a b

11a b 12 13a b

Depletable assets . . . . . . . . .

Less accumulated depletion . .

Land (net of any amortization) . . .

Intangible assets (amortizable only) . . Less accumulated amortization . .

(

. .

. .

. .

. . .

. . .

14 15

Liabilities and statement) Shareholders’ Other assets (attach . . Equity . . .

Total assets . . . . .

16 17

Accounts payable .

.

.

.

.

.

.

(

(d)

(c)

500,000

. . .

(

2,125,000

3,300,000 4 5 0 , 0 0) 0 2,850,000 6,000,000 50,000

1,000,000 10,000,000 8,400,000 ( 1 , 6 0 0 , 0 ) 0 0 ( )

)

(

)

16,631,250 2,610,000

20,425,000 2,120,000 417,375 8,500,000 378,000 6,000,000

.

Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) Taxes payable

18 19

Loans from shareholders . . . . . . .

Mortgages, notes, bonds payable in 1 year or more

20 21

8,500,000

22

Other liabilities (attach statement) Net DTLb Capital stock: a Preferred stock . . . . b Common stock . . . .

23 24

Additional paid-in capital . . . . . . .

Retained earnings—Appropriated (attach statement)

25 26

Adjustments to shareholders’ equity (attach statement)

27 28

Less cost of treasury stock . . . .

Total liabilities and shareholders’ equity

Retained earnings—Unappropriated

Schedule M-1

.

. . .

6,000,000

6,000,000

600,000

(478,750)

. (

. .

16,631,250

3,009,625 )

(

Reconciliation of Income (Loss) per Books With Income per Return

20,425,000

)

Note: The corporation may be required to file Schedule M-3. See instructions.

1 2 3

Net income (loss) per books See Schedule M-3

4

Income subject to tax not recorded on books this year (itemize):

5

Expenses recorded on books this year not deducted on this return (itemize): Depreciation . . . . $

Federal income tax per books .

.

.

.

Excess of capital losses over capital gains

.

Income recorded on books this year not included on this return (itemize):

.

Tax-exempt interest

7

8

a b c 6

3

4

a b

Deductions on this return not charged against book income this year (itemize): a Depreciation . . $ b Charitable contributions $

Charitable contributions . $ Travel and entertainment . $ Add lines 1 through 5 .

Schedule M-2 1 2

$

.

.

.

.

.

.

9 10

.

Add lines 7 and 8 . . . . . .

Income (page 1, line 28)—line 6 less line 9

Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25)

Balance at beginning of year Net income (loss) per books .

Other increases (itemize):

Add lines 1, 2, and 3 .

.

.

. .

.

. .

.

. .

.

. .

.

. .

.

(478,750) 3,488,375

3,009,625

5

6 7 8

257,250 DTA - $126,000 DTL. $472,500 DTL - $94,500 DTA.

C:TRP-30 ..

Distributions:a Cash . . . . b Stock c Property . .

Other decreases (itemize):

. .

. .

.

.

Add lines 5 and 6 . . . . . .

Balance at end of year (line 4 less line 7)

-03,009,625

Form 1120 (2022)

C:3-67 SCHEDULE M-3 (Form 1120) (Rev. December 2019) Department of the Treasury Internal Revenue Service

Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More

Employer identification number

Name of corporation (common parent, if consolidated return)

Permtemp Corporation

Check applicable box(es):

(1) ✓Non-consolidated return(2) Mixed 1120/L/PC group

(3)

Part I

OMB No. 1545-0123

Attach to Form 1120 or 1120-C. Go to www.irs.gov/Form1120 for instructions and the latest information.

(4)

XX-1234567

Consolidated return (Form 1120 only) Dormant subsidiaries schedule attached

Financial Information and Net Income (Loss) Reconciliation (see instructions)

1a

Did the corporation file SEC Form 10-K for its income statement period ending with or within this tax year?

Yes.Skip lines 1b and 1c and complete lines 2a through 11 with respect to that SEC Form 10-K. ✓No. Go to line 1b. See instructions if multiple non-tax-basis income statements are prepared. b Did the corporation prepare a certified audited non-tax-basis income statement for that period?

Yes.Skip line 1c and complete lines 2a through 11 with respect to that income statement. ✓No. Go to line 1c. c Did the corporation prepare a non-tax-basis income statement for that period?

✓Yes.Complete lines 2a through 11 with respect to that income statement.

No. Skip lines 2a through 3c and enter the corporation’s net income (loss) per its books and records on line 4a.

Ending 2a Enter the income statement period: Beginning b Has the corporation’s income statement been restated for the income statement period on line 2a?

Yes.(If “Yes,” attach an explanation and the amount of each item restated.)

01/01/2022

12/31/2022

✓No.

c

Has the corporation’s income statement been restated for any of the five income statement periods immediately preceding the period on line 2a?

Yes.(If “Yes,” attach an explanation and the amount of each item restated.)

3a

Is any of the corporation’s voting common stock publicly traded?

✓No.

✓No. If “No,” go to line 4a.

Yes.

b Enter the symbol of the corporation’s primary U.S. publicly traded voting common stock . . . . . . . . . . . . . . . . . . . . . . . . . . c Enter the nine-digit CUSIP number of the corporation’s primary publicly traded voting common stock . . . . . . . . . . . . . . . . . . . . . . .

Worldwide consolidated net income (loss) from income statement source identified in Part I, line 1 .

4a 4a Indicate accounting standard used for line 4a (see instructions): b (1)✓GAAP (2) IFRS (3) Statutory(4) Tax-basis (5) Other (specify) 5a ( ) . . . . . . . . . . . .

5a Net income from nonincludible foreign entities (attach statement) 5b . . b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) .

6a ( ) . . .

6a Net income from nonincludible U.S. entities (attach statement) . . . . . . . . . .

6b . . . loss from nonincludible U.S. entities (attach statement and enter as a positive amount) . b Net 7a . .

7a . Net income (loss) of other includible foreign disregarded entities (attach statement) . .

7b . . . .. . income (loss) of other includible U.S. disregarded entities (attach statement) b Net 7c . . . .. . c Net income (loss) of other includible entities (attach statement) . . . . . .

Adjustment to eliminations of transactions between includible entities and nonincludible entities (attach 8 statement) . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .

8 Adjustment to reconcile income statement period to tax year (attach statement) .. . . . . .

9 9 . .. . . . . .

10a Intercompany dividend adjustments to reconcile to line 11 (attach statement) 10a Other statutory accounting adjustments to reconcile to line 11 (attach statement) . . . . . . .

10b b .. . . . . .

10c c Other adjustments to reconcile to amount on line 11 (attach statement) . . .

Combine lines 4 through 10 .

11 11 Net income (loss) per income statement of includible corporations.

Note: Part I, line 11, must equal Part II, line 30, column (a) or Schedule M-1, line 1 (see instructions).

Enter the total amount (not just the corporation’s share) of the assets and liabilities of all entities included or removed on the 12 following lines.

Total Assets Total Liabilities

3,488,375

3,488,375

a b c d

Included on Part I, line 4 .

Removed on Part I, line 5 .

Removed on Part I, line 6 .

Included on Part I, line 7 .

. . . .

. . . .

. . . .

. . . .

. . . .

. . . .

20,425,000

For Paperwork Reduction Act Notice, see the Instructions for Form 1120.

C:TRP-31 ..

11,415,375

Cat. No. 37961C

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:3-67 Page 2

Schedule M-3 (Form 1120) (Rev. 12-2019)

Employer identification number

Name of corporation (common parent, if consolidated return)

Permtemp Corporation

Check applicable box(es): (1)

Consolidated group

Check if a sub-consolidated: (6)

1120 group

Parent corp

(2)

Consolidated eliminations

(3)

(4)

(5)

Mixed 1120/L/PC group

1120 eliminations

(7)

Employer identification number

Name of subsidiary (if consolidated return)

Part II

XX-1234567

Subsidiary corp

Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return (see instructions) (a) (b) (c) (d) Income (Loss) Items Temporary Permanent Income (Loss) Income (Loss) per

(Attach statements for lines 1 through 12) 1 Income (loss) from equity method foreign corporations 2 Gross foreign dividends not previously taxed . . .

3 Subpart F, QEF, and similar income inclusions . .

4 .Gross-up for foreign taxes deemed paid . . .

5 Gross . . foreign distributions previously taxed .

6 Income (loss) from equity method U.S. corporations 7 U.S. dividends not eliminated in tax consolidation 8 Minority interest for includible corporations . . .

9 Income (loss) from U.S. partnerships . . . . .

10 . . . .

11 Income (loss) from foreign partnerships Income (loss) from other pass-through entities . .

12 Items relating to reportable transactions . . . .

13 14 15 . Total accrual to cash adjustment . . . . . . . . . . . . . . .

16 .Hedging transactions . . . . . .

17 .Mark-to-market income (loss) . . . .

18 .Cost of goods sold (see instructions) .. .

Sale versus lease (for sellers and/or lessors) . .

19 .

481(a) adjustments . . . . . . .

20 Section . revenue . . . . . . .

21 Unearned/deferred . . recognition from long-term contracts 22 Income Original issue discount and other imputed interest .

23a Income statement gain/loss on sale, exchange, abandonment, worthlessness, or other disposition of assets other than inventory and pass-through entities b Gross capital gains from Schedule D, excluding

Income Statement

Difference

.

.

.

perTax Return

55,000

55,000

Interest income (see instructions) T.-E. in.te.res.t.

15,000

amounts from pass-through entities .

Difference

15,000

(22,000,000)

-0(

22,000,000)

.

c Gross capital losses from Schedule D, excluding amounts from pass-through entities, abandonment losses, and worthless stock losses . . . . . d Net gain/loss reported on Form 4797, line 17, excluding amounts from pass-through entities, abandonment losses, and worthless stock losses e Abandonment losses . . . . . . . . . . f Worthless stock losses (attach statement) . . . . g Other gain/loss on disposition of assets other than inventory 24 Capital loss limitation and carryforward used . . .

25 Other income (loss) items with differences (attach statement) 26Total income (loss) items.Combine lines 1 through 25 27Total expense/deduction items (from Part III, line 39) 28 Other items with no differences . . . . . . .

29a Mixed groups, see instructions. All others, combine lines 26 through 28 . . . . . . . . . . . . b PC insurance subgroup reconciliation totals . . . c Life insurance subgroup reconciliation totals .

*

(21,930,000) -0(2,906,625)(1,550,000) 28,325,000 3,488,375 (1,550,000)

(15,000) 966,625 951,625

3,488,375 (1,550,000)

951,625

2,890,000

30 Reconciliation totals.Combine lines 29a through 29c Note: Line 30, column (a), must equal Part I, line 11, and column (d) must equal Form 1120, page 1, line 28.

*$33,000,000 sales - $4,675,000 other expenses.

C:TRP-32 ..

(21,945,000) (3,490,000) 28,325,000

2,890,000

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:3-67 Page 3

Schedule M-3 (Form 1120) (Rev. 12-2019)

Employer identification number

Name of corporation (common parent, if consolidated return)

Permtemp Corporation

Check applicable box(es): (1)

Consolidated group

Check if a sub-consolidated: (6)

1120 group

(7)

(2)

Parent corp

(3)

Consolidated eliminations

(4)

(5)

1120 eliminations Employer identification number

Name of subsidiary (if consolidated return)

Part III

XX-1234567 Mixed 1120/L/PC group

Subsidiary corp

Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return—Expense/Deduction Items (see instructions) (a) Expense per Income Statement

Expense/Deduction Items

417,375 509,250

1 2 3 4 5

U.S. current income tax expense . . . . . . .

U.S. deferred income tax expense . . . . . .

State and local current income tax expense . . .

State and local deferred income tax expense . . .

Foreign current income tax expense (other than foreign withholding taxes) . . . . . . . . . . . .

6 Foreign deferred income tax expense . . . . . . . .

7 .Foreign withholding taxes .

8 Interest expense (see instructions) . . . . . . . .

9 Stock option expense . . . . . . . . . . . . .

10 Other equity-based compensation . . . . . .

11 .Meals and entertainment . . . . . . . .

12 .Fines and penalties . . . . .

13 Judgments, damages, awards, and similar costs . . .

14 Parachute payments . . . . . . . . . . .

15 Compensation with section 162(m) limitation . . .

16 Pension . and profit-sharing . . . . . . . .

17 .Other post-retirement benefits . . . . . .

18 Deferred . . . . . compensation . .

19 Charitable contribution of cash and tangible property 20 Charitable contribution of intangible property . .

21 Charitable contribution limitation/carryforward . .

22 Domestic production activities deduction (see instructions) . . . . . . . . . . . . . .

23 Current year acquisition or reorganization investment banking fees . . . . . . . .

24 Current year acquisition or reorganization legal and accounting fees . . . . . . . . . . .

25 Current year acquisition/reorganization other costs . . . . .

26 Amortization/impairment of goodwill .

27 Amortization of acquisition, reorganization, and start-up costs . . . . . . . . . . . . . .

28 Other amortization or impairment write-offs . . . . . . . . . . . . . . .

29 Reserved . . . . . . . . . . . . . .

30 Depletion . . . . . . . . . . . . .

31 Depreciation debt expense . . . . . . . . . . .

32 Bad owned life insurance premiums . . .

33 Corporate 34 Purchase versus lease (for purchasers and/or lessees) 35 Research and development costs . . . . . .

36 Section 118 exclusion (attach statement) . . . .

37 Section 162(r)—FDIC premiums paid by certain large financial institutions (see instructions) . .

(b) Temporary Difference

.

(c) Permanent Difference

(d) Deduction per Tax Return

(417,375) (509,250)

455,000

455,000

60,000

(40,000)

20,000

40,000

40,000 100,000

100,000

800,000 625,000

1,650,000 (200,000)

2,450,000 425,000

2,906,625

1,550,000

.

38 Other expense/deduction items with differences (attach statement) . . . . . . . . . .

39 Total expense/deduction items. Combine lines 1 through 38. Enter here and on Part II, line 27, reporting positive amounts as negative and negative amounts as positive . . . . . . .

(966,625)

3,490,000

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:TRP-33 ..

C:3-67 Permtemp Corporation Deferred Tax Accounting 2022 Deferred Tax Assets: Beg. of 2022 Net operating loss Charitable contributions carryover Net accounts receivable Total deductible temp. diff.

Times: Tax rate Deferred tax asset

$ 875,000 100,000 250,000 $1,225,000 0.21 $ 257,250

End of 2022 $

Change

-0-0450,000* $450,000 0.21 $ 94,500

$(875,000) (100,000) 200,000 $(775,000) $(162,750)

Beg. of 2022

End of 2022

Change

$600,000 0.21 $126,000

$2,250,000* 0.21 $ 472,500

$1,650,000

*$3,300,000 tax basis – $2,850,000 book basis Deferred Tax Liability:

Net fixed assets Times: Tax rate Deferred tax liability

$ 346,500

*$8,400,000 book basis – $6,150,000 tax basis Journal Entry: Current federal income tax expense Deferred federal income tax expense Deferred tax asset Deferred tax liability Federal income tax payable

417,375 509,250

162,750 346,500 417,375

Adjusted Income Statement (Partial): Net income before federal income taxes Minus: Federal income tax expense ($417,375 + $509,250) Net income per books Effective tax rate [$926,625/$4,415,000]

$4,415,000 (926,625) $3,488,375 20.988%

Tax Rate Reconciliation: Statutory tax rate Nondeductible M&E expense [$40,000/$4,415,000 × 21%] Tax-exempt income [$(15,000)/$4,415,000 × 21%] Dividends-received ded. [$(27,500)/$4,415,000 × 21%] Effective tax rate

C:TRP-34 ..

21.000% 0.190% (0.071)% (0.131)% 20.988%

C:3-67 Permtemp Corporation Deferred Tax Accounting 2022 Provision Reconciliation: $ 4,415,000

Net income before federal income taxes Permanent differences: Nondeductible M&E expense Tax-exempt income Dividends-received deduction Net income after permanent differences Temporary differences: Bad debt expense Charitable contribution deduction Depreciation Net operating loss deduction Taxable income

40,000 (15,000) (27,500) $ 4,412,500 200,000 (100,000) (1,650,000) (875,000) $ 1,987,500

Adjusted Balance Sheet: $ 2,125,000

Cash Accounts receivable Minus: Allowance for doubtful accounts Inventory Fixed assets Minus: Accumulated depreciation Investment in corporate stock Investment in tax-exempt bonds Total assets

$ 3,300,000 (450,000) $10,000,000 (1,600,000)

Accounts payable Federal income tax payable Long-term debt Net deferred tax liability ($472,500 – $94,500) Common stock Retained earnings [$(478,750) + $3,488,375] Total liabilities and equity

C:TRP-35 ..

2,850,000 6,000,000 8,400,000 1,000,000 50,000 $20,425,000 $ 2,120,000 417,375 8,500,000 378,000 6,000,000 3,009,625 $20,425,000

C:3-68 Page 6

Form 1120 (2022)

Schedule L

Balance Sheets per Books

Beginning of tax year (a) (b)

Assets 1 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15

Cash . . . . . . . . .

Trade notes and accounts receivable

. . . .

Less allowance for bad debts . . . . . . . .

Inventories . U.S. . government . . . . obligations . . . .

Tax-exempt securities (see instructions) Other current assets (attach statement) . . . Other investments (attach statement) . .

Buildings and other depreciable Loans to shareholders . . assets . . .. . . . . . . . . and real estate loans .

Mortgage . . . .

Less accumulated depreciation . . . . .

Depletable assets . . . . . . .

Less accumulated depletion . .

Land (net of any amortization) . . .

Intangible assets (amortizable only) .

Less accumulated amortization . . .

Other assets (attach statement) . . .

Total assets . . . . . . .

. . . . . . . . . . . . . . . . . . .

End of tax year (c)

(d)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

(

)

Liabilities and Shareholders’ Equity .

Accounts payable . . . . . . . .

Mortgages, notes, bonds payable in less than 1 year

16 17 18 19 20 21 22

Other current liabilities (attach statement) . . . .

Loans from shareholders . . . . .

Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . . a Preferred stock . . . .

Capital stock: b Common stock . . . . . . . .

Additional paid-in capital . . .

23 24 25 26 27 28

Retained earnings—Appropriated (attach statement) Retained earnings—Unappropriated . . .

Adjustments to shareholders’ equity (attach statement) Less cost of treasury stock . . . .

Total liabilities and shareholders’ equity

Schedule M-1

. .

(

. .

(

)

)

Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions.

1 2 3

Net income (loss) per books . . . . .

Federal income tax per books . . . .

Excess of capital losses over capital gains

4

Income subject to tax not recorded on books this year (itemize):

. . .

581,760 156,240 8,000

7

Tax-exempt interest

a b c 6

Expenses recorded on books this year not deducted on this return (itemize): Depreciation . . . . $ $ Charitable contributions .

Travel and entertainment . $

Add lines 1 through 5 .

Schedule M-2 1 2 3

4

.

.

.

.

.

Deductions on this return not charged against book income this year (itemize): aDepreciation . . $ b Charitable contributions $

4,000

*16,000

.

10,000

$

10,000 8

5

Income recorded on books this year not included on this return (itemize):

.

20,000 766,000

9 10

40,000

Add lines 7 and 8 . . . . . .

Income (page 1, line 28)—line 6 less line 9

Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25)

Balance at beginning of year Net income (loss) per books .

Other increases (itemize):

Add lines 1, 2, and 3 .

.

.

. .

.

. .

.

. .

.

. .

.

. .

.

5

6 7 8

Distributions:a Cash . . b Stock c Property .

Other decreases (itemize): Add lines 5 and 6 . . .

. . .

. . .

. . .

Balance at end of year (line 4 less line 7)

*$7,000 interest on loan for T-E bonds + $9,000 insurance premium C:TRP-36 ..

. . .

40,000 50,000 716,000

Form 1120 (2022)

C:3-69 SCHEDULE M-3 (Form 1120) (Rev. December 2019) Department of the Treasury Internal Revenue Service

Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More

Employer identification number

Name of corporation (common parent, if consolidated return)

Omega Corporation

Check applicable box(es):

(1) ✓Non-consolidated return(2) Mixed 1120/L/PC group

(3)

Part I

OMB No. 1545-0123

Attach to Form 1120 or 1120-C. Go to www.irs.gov/Form1120 for instructions and the latest information.

(4)

XX-1234321

Consolidated return (Form 1120 only) Dormant subsidiaries schedule attached

Financial Information and Net Income (Loss) Reconciliation (see instructions)

1a

Did the corporation file SEC Form 10-K for its income statement period ending with or within this tax year?

Yes.Skip lines 1b and 1c and complete lines 2a through 11 with respect to that SEC Form 10-K. ✓No. Go to line 1b. See instructions if multiple non-tax-basis income statements are prepared. b Did the corporation prepare a certified audited non-tax-basis income statement for that period?

Yes.Skip line 1c and complete lines 2a through 11 with respect to that income statement. ✓No. Go to line 1c. c Did the corporation prepare a non-tax-basis income statement for that period?

✓Yes.Complete lines 2a through 11 with respect to that income statement.

No. Skip lines 2a through 3c and enter the corporation’s net income (loss) per its books and records on line 4a.

Ending 2a Enter the income statement period: Beginning b Has the corporation’s income statement been restated for the income statement period on line 2a?

Yes.(If “Yes,” attach an explanation and the amount of each item restated.)

01/01/2022

12/31/2022

✓No.

c

Has the corporation’s income statement been restated for any of the five income statement periods immediately preceding the period on line 2a?

Yes.(If “Yes,” attach an explanation and the amount of each item restated.)

✓No. 3a

Is any of the corporation’s voting common stock publicly traded?

✓No. If “No,” go to line 4a.

Yes.

b Enter the symbol of the corporation’s primary U.S. publicly traded voting common stock . . . . . . . . . . . . . . . . . . . . . . . . . . c Enter the nine-digit CUSIP number of the corporation’s primary publicly traded voting common stock . . . . . . . . . . . . . . . . . . . . . . .

Worldwide consolidated net income (loss) from income statement source identified in Part I, line 1 .

4a 4a Indicate accounting standard used for line 4a (see instructions): b (1)✓GAAP (2) IFRS (3) Statutory(4) Tax-basis (5) Other (specify) 5a ( ) . . . . . . . . . . . .

5a Net income from nonincludible foreign entities (attach statement) 5b . . b Net loss from nonincludible foreign entities (attach statement and enter as a positive amount) .

6a ( ) . . .

6a Net income from nonincludible U.S. entities (attach statement) . . . . . . . . . .

6b . . . loss from nonincludible U.S. entities (attach statement and enter as a positive amount) . b Net 7a . .

7a . Net income (loss) of other includible foreign disregarded entities (attach statement) . .

7b . . . .. . income (loss) of other includible U.S. disregarded entities (attach statement) b Net 7c . . . .. . c Net income (loss) of other includible entities (attach statement) . . . . . .

Adjustment to eliminations of transactions between includible entities and nonincludible entities (attach 8 statement) . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .

8 Adjustment to reconcile income statement period to tax year (attach statement) .. . . . . .

9 9 . .. . . . . .

10a Intercompany dividend adjustments to reconcile to line 11 (attach statement) 10a Other statutory accounting adjustments to reconcile to line 11 (attach statement) . . . . . . .

10b b .. . . . . .

10c c Other adjustments to reconcile to amount on line 11 (attach statement) . . .

Combine lines 4 through 10 .

11 11 Net income (loss) per income statement of includible corporations.

Note: Part I, line 11, must equal Part II, line 30, column (a) or Schedule M-1, line 1 (see instructions).

Enter the total amount (not just the corporation’s share) of the assets and liabilities of all entities included or removed on the 12 following lines.

Total Assets Total Liabilities

331,860

331,860

a b c d

Included on Part I, line 4 .

.

.

.

.

.

.

Removed on Part I, line 5 .

Removed on Part I, line 6 .

Included on Part I, line 7 .

. . .

. . .

. . .

. . .

. . .

. . .

*

For Paperwork Reduction Act Notice, see the Instructions for Form 1120.

*Information not provided.

C:TRP-37 ..

* Cat. No. 37961C

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:3-69 Page 2

Schedule M-3 (Form 1120) (Rev. 12-2019)

Employer identification number

Name of corporation (common parent, if consolidated return)

Omega Corporation

Check applicable box(es): (1)

Consolidated group

Check if a sub-consolidated: (6)

1120 group

Parent corp

(2)

(3)

Consolidated eliminations

(4)

(5)

Mixed 1120/L/PC group

1120 eliminations

(7)

Employer identification number

Name of subsidiary (if consolidated return)

Part II

XX-1234321

Subsidiary corp

Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return (see instructions) (a) (b) (c) (d) Income (Loss) Items Income (Loss) per Temporary Permanent Income (Loss)

(Attach statements for lines 1 through 12) 1 Income (loss) from equity method foreign corporations 2 Gross foreign dividends not previously taxed . . .

3 Subpart F, QEF, and similar income inclusions . .

4 Gross-up . . for foreign taxes deemed paid . .

5 Gross . . foreign distributions previously taxed .

6 Income (loss) from equity method U.S. corporations 7 U.S. dividends not eliminated in tax consolidation 8 Minority interest for includible corporations . . .

9 Income (loss) from U.S. partnerships . . . . .

10 Income (loss) from foreign partnerships . . . .

11 Income (loss) from other pass-through entities . .

12 Items relating to reportable transactions . . . .

13 Interest income (see instructions) . . . . . .

14 Total accrual to cash adjustment . . . . . . .

15 . . . . . . . . . .

16 Hedging transactions . . . . . . . income (loss) .

17 Mark-to-market . . . .

Cost of goods sold (see instructions) ..

18 Sale versus lease (for sellers and/or lessors) . . .

19 . . .

20 Section 481(a) adjustments . . . . . .

21 Unearned/deferred revenue . . . . . . . . .

22 Income recognition from long-term contracts Original issue discount and other imputed interest .

23a Income statement gain/loss on sale, exchange, abandonment, worthlessness, or other disposition of assets other than inventory and pass-through entities b Gross capital gains from Schedule D, excluding amounts from pass-through entities .

.

.

.

Income Statement

Difference

1,000

Difference

(

11,000 18,000

1,100,000 )

18,000

.

c Gross capital losses from Schedule D, excluding amounts from pass-through entities, abandonment losses, and worthless stock losses . . . . .

-0-

(1,000)

(1,100,000)

(11,000)a

perTax Return

(38,000)

(38,000)

d Net gain/loss reported on Form 4797, line 17, excluding amounts from pass-through entities, abandonment losses, and worthless stock losses e Abandonment losses . . . . . . . . . . f Worthless stock losses (attach statement) . . . . g Other gain/loss on disposition of assets other than inventory 24 Capital loss limitation and carryforward used . . .

25 Other income (loss) items with differences (attach statement) 26Total income (loss) items.Combine lines 1 through 25 27Total expense/deduction items (from Part III, line 39) . . . . . .

28 Other items with no differences .

29a Mixed groups, see instructions. All others, combine lines 26 through 28 . . . . . . . . . . . . b PC insurance subgroup reconciliation totals . . . c Life insurance subgroup reconciliation totals .

30 Reconciliation totals.Combine lines 29a through 29c Note: Line 30, column (a), must equal Part I, line 11, and column (d) must equal Form 1120, page 1, line 28.

(1,110,000) (238,140) 1,680,000c

20,000 (15,000)b (4,000) (36,000) (40,000)

(1,000) 103,140 102,140

20,000 (15,000) (1,115,000) (171,000) 1,680,000 394,000

(40,000)

102,140

394,000

331,860

331,860

a$9,000 installment income – $20,000 loss on stock sales. bNOL carryover. c$1,900,000 sales – $220,000 other business expenses.

C:TRP-38 ..

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:3-69 Page 3

Schedule M-3 (Form 1120) (Rev. 12-2019)

Employer identification number

Name of corporation (common parent, if consolidated return)

Omega Corporation

Check applicable box(es): (1)

Consolidated group

Check if a sub-consolidated: (6)

1120 group

(7)

(2)

Parent corp

(3)

Consolidated eliminations

(4)

(5)

1120 eliminations Employer identification number

Name of subsidiary (if consolidated return)

Part III

XX-1234321 Mixed 1120/L/PC group

Subsidiary corp

Reconciliation of Net Income (Loss) per Income Statement of Includible Corporations With Taxable Income per Return—Expense/Deduction Items (see instructions) (a) Expense per Income Statement

Expense/Deduction Items 1 2 3 4 5

U.S. current income tax expense . . . . . . .

U.S. deferred income tax expense . . . . . .

State and local current income tax expense . . .

State and local deferred income tax expense . . .

Foreign current income tax expense (other than foreign withholding taxes) . . . . . . . . . . . .

6 Foreign deferred income tax expense . . . . . . . .

7 .Foreign withholding taxes .

8 Interest expense (see instructions) . . . . . . . .

9 Stock option expense . . . . . . . . . . . . .

10 Other equity-based compensation . . . . . .

11 .Meals and entertainment . . . . . . . .

12 .Fines and penalties . . . . .

13 Judgments, damages, awards, and similar costs . . .

14 Parachute payments . . . . . . . . . . .

15 Compensation with section 162(m) limitation . . .

16 Pension . and profit-sharing . . . . . . . .

17 .Other post-retirement benefits . . . . . .

18 Deferred . . . . . compensation . .

19 Charitable contribution of cash and tangible property 20 Charitable contribution of intangible property . .

21 Charitable contribution limitation/carryforward . .

22 Domestic production activities deduction (see instructions) . . . . . . . . . . . . . .

23 Current year acquisition or reorganization investment banking fees . . . . . . . .

24 Current year acquisition or reorganization legal and accounting fees . . . . . . . . . . .

25 Current year acquisition/reorganization other costs . . . . .

26 Amortization/impairment of goodwill .

27 Amortization of acquisition, reorganization, and start-up costs . . . . . . . . . . . . . .

28 Other amortization or impairment write-offs . . . . . . . . . . . . . . .

29 Reserved . . . . . . . . . . . . . .

30 Depletion . . . . . . . . . . . . .

31 Depreciation debt expense . . . . . . . . . . .

32 Bad owned life insurance premiums . . .

33 Corporate 34 Purchase versus lease (for purchasers and/or lessees) 35 Research and development costs . . . . . .

36 Section 118 exclusion (attach statement) . . . .

37 Section 162(r)—FDIC premiums paid by certain large financial institutions (see instructions) . .

38 Other expense/deduction items with differences (attach statement)

(c) Permanent Difference

(d) Deduction per Tax Return

82,740 8,400 27,000

(82,740) (8,400)

18,000

(2,000)

16,000

10,000

(10,000)

-0-

27,000

80,000

48,000

128,000

12,000

(12,000)

-0-

238,140

36,000

.

..W.ar.r.. ex.p.....

39 Total expense/deduction items. Combine lines 1 through 38. Enter here and on Part II, line 27, reporting positive amounts as negative and negative amounts as positive . . . . . . .

.

(b) Temporary Difference

103,140

171,000

Schedule M-3 (Form 1120) (Rev. 12-2019)

C:TRP-39 ..

C:8-68

U.S. Corporation Income Tax Return

1120

Form Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851)

.

b Life/nonlife consolidated return. . .

2 Personal holding co. . (attach Sch. PH) .

✓ TYPE OR PRINT

4

Income Deductions (See instructions for limitations on deductions.)

PaymentsCredits, and Tax, Refundable

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29a bc

, 20

Name

B Employer identification number

Flying Gator Corporation and Subsidiary

38-2345678

Number, street, and room or suite no. If a P.O. box, see instructions.

C Date incorporated

City or town, state or province, country, and ZIP or foreign postal code

D Total assets (see instructions)

2101 W. University Avenue

6/11/2010

Gainesburg, FL 32611

E Check if: (1)

Initial return

$

Final return

(2)

.

Gross receipts or sales . . . . . . . . . . . . . .Returns and allowances . . . . . . . . . . . . . .Balance. Subtract line 1b from line 1a . . . . . . . . .Cost of goods sold (attach Form 1125-A). . . . . . . . .Gross profit. Subtract line 2 from line 1c . . . . . . . . .Dividends and inclusions (Schedule C, line 23) . . . . . . .Interest . . . . . . . . . . . . . . . . . .Gross rents . . . . . . . . . . . . . . . . .Gross royalties . . . . . . . . . . . . . . .

Capital gain net income (attach Schedule D (Form 1120)) . . . .

Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797)

Name change

(3)

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . .

(4)

3,740,000

1a 1b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other income (see instructions—attach statement) . . . . . . . . . . . . . . . . . . .

Total income. Add lines 3 through 10 . . . . . . . . . .

Compensation of officers (see instructions—attach Form 1125-E) . . . . . . . . . .

Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . .

Repairs and maintenance . . . . . . . . . . . . . . . . . . . .

Bad debts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rents . . . . . . . . . . . . . . . . . . . . .

Taxes and licenses . . . . . . . . . . . . . . . . . . . . . .

Interest (see instructions) . . . . . . . . . . . . . . . . . . . .

Charitable contributions . . . . . .

Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562). . . . .Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . .

Employee benefit programs . . . . . . . . . . . . . . . . . . . . . . .

Reserved for future use . . . . . .

Other deductions (attach statement) . . . . . . . . . . . . . . . . . . . . .

Total deductions. lines 12operating through 26 . deduction . . .and. special . . deductions. . . . . Subtract . . .line. 27 .from . line 11.

Taxable incomeAdd before net loss Net operating loss deduction (see instructions) . . . .

Special deductions (Schedule C, line 24). . . . . .

Add lines 29a and 29b . . . . .

. . .

. . .

. . .

. . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

Taxable income. Subtract line 29c from line 28. See instructions

. . . . .

. . . . .

. . . . .

. . . . .

34 35 36 37

. . . . .

Estimated tax penalty. See instructions. Check if Form 2220 is attached Amount owed. If line 33 is smaller than the total of lines 31 and 34, enter amount owed Overpayment. If line 33 is larger than the total of lines 31 and 34, enter amount overpaid Enter amount from line 36 you want: Credited to 2023 estimated tax

. . .

. . .

. . . . . . . . .

Refunded

Total tax(Schedule J, Part I, line 11) . . . . . . . . . . . .

Reserved for future use . . . .

Total payments and credits (Schedule J, Part III, line 23)

. . .

. . .

. . .

. . . . .

430,000

Address change

1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

50,000 32,500

29a 29b

30 31 32 33

Sign Here

20 22

Go to www.irs.gov/Form1120 for instructions and the latest information.

Personal service corp.

3 (see instructions)..

Schedule M-3 attached

1a b c

OMB No. 1545-0123

, 2022, ending

For calendar year 2022 or tax year beginning

. . . . .

. . . . .

3,740,000 2,194,400 1,545,600 50,000 15,000 27,000 25,000 1,662,600 145,000 230,000 65,000 15,000 42,000 50,000 52,060 125,000 420,000 1,144,060 518,540 82,500 436,040 91,568

29c 30 31 32 33 34 35 36 37

100,000

8,432 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, 8,432 and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

May the IRS discuss this return with the preparer shown below?

Signature of officer Print/Type preparer’s name

Paid Preparer Use Only Firm’s name

Date Preparer’s signature

See instructions.Yes

Title Date

Check if self-employed

No

PTIN

Firm’s EIN Phone no.

Firm’s address

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11450Q

C:TRP-40 ..

Form 1120 (2022)

C:8-68

Line

Title

Flying Gator Corporation and Subsidiary 38-2345678 2022 Form 1120 Taxable Income Computations Flying Consolidated Adjustments Gator and Eliminations $ (10,000)a $3,740,000 $2,500,000 $ (10,000) $3,740,000 $2,500,000 5,600a $ (4,400) (2,194,400) (1,500,000) (100,000)b $1,545,600 $1,000,000 50,000 100,000 15,000c 15,000

1a Gross receipts or sales 1b Returns & allowances 1c Balance (1a minus 1b) 2 Cost of goods sold 3 Gross profit 4 Dividends & inclusions 5 Interest 6 Gross rents 7 Gross royalties 8 Capital gain net income 9 Net gain or loss/Form 4797 10 Other income 11 Total income 12 Compensation of officers 13 Salaries and wages 14 Repairs and maintenance 15 Bad debts 16 Rents 17 Taxes and licenses 18 Interest 19 Charitable contributions 20 Depreciation 21 Depletion 22 Advertising 23 Pension, profit-sharing, etc.

24 Employee benefit programs 25 Reserved for future use 26 Other deductions 27 Total deductions 28 Taxable income before

27,000 25,000 $1,662,600 145,000 230,000 65,000 15,000 42,000 50,000c 52,060 125,000

9,000e

(5,000)

$ (95,400)

$1,110,000 80,000 95,000 25,000 10,000 18,000 30,000 22,000 85,000

(17,940)f

420,000 $1,144,060 $ 518,540

NOL deduction & special ded.

29a NOL deduction (50,000) 29b Special ded. (e.g., DRD) (32,500)g 30 Taxable income $ 436,040 31 Total tax $ 91,568h

$ (17,940) $ (77,460)

C:TRP-41 ..

160,000 $ 525,000 $ 585,000

T Corp.

$1,250,000 $1,250,000 (700,000) $ 550,000 50,000

23,000d 25,000 $ 648,000 65,000 135,000 40,000 5,000 24,000 20,000 48,000 40,000

260,000 $ 637,000 $ 11,000

C:8-68 a The group defers $40,700 ($92,500 − $51,800) of gross profit from the preceding year to the current year, and it defers $45,100 ($102,500 − $57,400) of gross profit from the current year to the next year.

The current year net adjustments are: Gross receipts or sales: $ 92,500 − $102,500 = $(10,000) Cost of goods sold:* $(51,800) − $ (57,400) = $ 5,600 Gross profit: $ 40,700 − $ 45,100 = $ (4,400) *The $51,800 and $57,400 are negative because cost of goods sold reduces gross profit. bExclusion of dividend T pays to Flying Gator. Adjustment is needed because the dividends are included in Flying Gator’s separate taxable income calculation. c Under the matching rule, Flying Gator’s $15,000 of interest income is matched with $15,000 of T’s interest expense. The group includes T’s interest expense on Line 18, and it includes Flying Gator’s interest income on Line 5. d ($3,000) NSTCL + $6,000 NLTCG + $20,000 net Sec. 1231 gain = $23,000 T’s capital gain net income. e The $9,000 loss on Flying Gator’s land sale to T is deferred under the intercompany transaction rules. f Charitable contributions ($22,000 + $48,000) $$1,662,600 70,000 Deduction limitation: Total income (Line 11) Compensation of officers (Line 12) (145,000) Salaries and wages (Line 13) (230,000) Repairs and maintenance (Line 14) (65,000) Bad debts (Line 15) (15,000) Taxes and licenses (Line 17) (42,000) Interest (Line 18) (50,000) Depreciation (Line 20) (125,000) Other deductions (Line 26) (420,000) NOL deduction (Line 29a) (50,000) Base for deduction limitation $ 520,600 Times: Contributions limitation percentage 0.10 Deduction limitation $ 52,060 Deduction (lesser of $70,000 or $52,060) $ 52,060 Carryover to next year ($70,000 − $52,060) $ 17,940 g Dividends-received deduction = $50,000 × 0.65 = $32,500. A dividends-received deduction is not allowed for the $100,000 dividend T pays to Flying Gator because it is excluded from consolidated income (see Item b above). h $436,040 × 0.21.

C:TRP-42 ..

C:9-57

Form

1065

U.S. Return of Partnership Income For calendar year 2022, or tax year beginning

Department of the Treasury

OMB No. 1545-0123

, 2022, ending

, 20

.

20 22

Go to www.irs.gov/Form1065 for instructions and the latest information.

Internal Revenue Service A Principal business activity

Name of partnership

D Employer identification number

B Principal product or service Type

Number, street, and room or suite no. If a P.O. box, see instructions.

E Date business started

Tailor

Men’s Clothes

C Business code number

or Print

Dapper-Dons Partnership

K

2012

123 Flamingo Drive

City or town, state or province, country, and ZIP or foreign postal code

F Total assets (see instructions)

City, ST 54321

458110 G H I J

XX-XXXXXXX

(1) Check applicable boxes: Check accounting method: (1)

Initial return Cash

(2) (2)

X

$ Final return Accrual

(3) (3)

Name change (4) Other (specify):

Address change

1,128,000 Amended return

2

Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year: Check if Schedules C and M-3 are attached . . . . . . . . . . . . .

Aggregated activities for section 465 at-risk purposes (2) Check if partnership: (1)

(5)

. . . . . . . . . . . . . . . .

Grouped activities for section 469 passive activity purposes

Caution: Include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information. . . .and. allowances . . . .. . . . . . . . .

1a 1a Gross receipts or sales. Returns . . . . . . . . . . . . . . .

1b b Balance. Subtract line 1b from line 1a . c Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . .

1c . . . . . . . . . . . . . . . . . .

2 2 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . .. . . .

3 3 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . .

4 4 . . . .

5 5 .Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . .

6 6 .Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . .

7 7 .Other . . . . . . . income (loss) (attach statement) . . . . . . . . . . .

8 8 .. . . . . . .

Combine lines 3 through 7 . Total . . income . . (loss). . . .

9 9 . . . . .

Salaries and wages (other than to partners) (less employment credits) . . . .

10 10 . Guaranteed payments to partners . . . . . . . . . . . . . . . . . . . .

11 11 .Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . .

12 12 . . . . . . . . . . . . . . . . . . . .

Bad debts . . . . . . . . . .

13 13 . . . .

Rent . . . . . . . . . . . . . . . . . . . . . . . . . . .

14 . . . . .

14 Taxes and licenses . . . . . . . . . . . . . . . . . . . .

15 . . . . . . . . . . . . .

Interest (see instructions). . . . . . .

15 16a . . . . . . .

Depreciation (if required, attach Form 4562) . . .

16a Less depreciation reported on Form 1125-A and elsewhere on return . 16b b 16c . . . . . .

Depletion (Do not deduct oil and gas depletion.) . . . . . . . . .

17 17 . . . . . . . . .

18 18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . .

19 Employee benefit programs . . . . . . . . . . . . . .

19 . . . . . . . . .

20 Other deductions (attach statement) . . . . . . . . . . .

20 Add the amounts shown in the far right column for lines 9 through 20 . . .

21 21 Total deductions. . .

22 22 Subtract line 21 from line 8 . . . . . . . . .

Ordinary business income (loss).

23 23 Interest due under the look-back method—completed long-term contracts (attach Form 8697) .

24 24 .

Interest due under the look-back method—income forecast method (attach Form 8866). .

25 25 . BBA AAR imputed underpayment (see instructions) . . . . . .. . . . . . . .

26 26 . .. . . . . . . . . . . . .

Other taxes (see instructions) . . . . . . .

27 . .. . . . . . . . . . . . .

27 Total balance due. Add lines 23 through 26 . .

28 . . . . . . . . . . . . . . .

28 Payment (see instructions) . . . . . . . .

29 .Amount owed. If line 28 is smaller than line 27, enter amount owed . . . . . . . ..

29 30 . ..

30 . . . . . . .

Overpayment. If line 28 is larger than line 27, enter overpayment

Deductions (see instructions for limitations)

Income

2,357,000 20,000

2,337,000 1,332,050 1,004,950

1,004,950 51,000 85,000 68,300 2,100 7,400 6,580 45,000

(5,180 + 1,400)

49,782

49,782

Tax and Payment

162,553 477,715 527,235

Sign Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than partner or limited liability company member) is based on all information of which preparer has any knowledge.

Jeremy Dons Date

Signature of partner or limited liability company member Print/Type preparer’s name

Paid Preparer Firm’s name Use Only Firm’s address

3-12-23 Date

Preparer’s signature

May the IRS discuss this return with the preparer shown below?

See instructions. Yes No Check if self-employed

PTIN

Firm’s EIN Phone no.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11390Z

C:TRP-43 ..

Form 1065 (2022)

C:9-57 Page 2

Form 1065 (2022)

Schedule B 1 a c e 2 a

Other Information Yes

What type of entity is filing this return? Check the applicable box: ✓Domestic general partnership b Domestic limited partnership d Domestic limited liability partnership Domestic limited liability company f Other: Foreign partnership At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership .

.

.

.

.

.

.

.

.

.

.

.

.

.

✓

.

b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership* .. . . . . . . . . . . . . . . . . . .

At the end of the tax year, did the partnership: 3 a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions.

If “Yes,” complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . .

✓ ✓

(ii)

(i) Name of Corporation

Employer Identification Number (if any)

(iii) Country of Incorporation

(iv) Percentage Owned in Voting Stock

b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below .. (i) Name of Entity

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Country of Organization

✓

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Yes

4

Does the partnership satisfy all four of the following conditions? a The partnership’s total receipts for the tax year were less than $250,000. b The partnership’s total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.

d The partnership is not filing and is not required to file Schedule M-3 . . . . . . . . . . . . . . .

If “Yes,” the partnership is not required to complete Schedules L, M-1, and M-2; item F on page 1 of Form 1065; or item L on Schedule K-1.

5 6 7

No

Is this partnership a publicly traded partnership as defined in section 469(k)(2)? .

. . . . . . . . . . .

During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . .

Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . .

No

✓ ✓ ✓ ✓

8

At any time during calendar year 2022, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)?

See instructions for exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If “Yes,” enter the name of the foreign country ✓ 9 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If “Yes,” the partnership may have to file Form 3520, Annual Return To Report Transactions With .Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . ✓ t h e p a r t n e r s h i p m a k i n g , o r h a d i t . . p . r .e .v .i o u s l y 10a I s ✓ See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If “Yes,” ✓ attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If “Yes,” attach a statement showing the computation and allocation of the basis adjustment. See instructions ✓

*Schedule B-1 is not attached. If attached, with these facts, it would list Jeremy Dons, who owns a 60% interest in the partnership.

C:TRP-44 ..

Form 1065 (2022)

m a d e

( a n d

n o t

r e v o k e d ) ,

a

s e

C:9-57 Page 3

Form 1065 (2022)

Schedule B

Other Information (continued)

11

Check this box if, during the current or prior tax year, the partnership distributed any property received in a likekind exchange or contributed such property to another entity (other than disregarded entities wholly owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . .

12

At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . .

.

Yes

.

If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), enter the number of Forms 8858 attached. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Does the partnership have any foreign partners? If “Yes,” enter the number of Forms 8805, Foreign Partner’s 14 Information Statement of Section 1446 Withholding Tax, filed for this partnership . . .. . . . . . . .

Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached 15 to this return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16a Did you make any payments in 2022 that would require you to file Form(s) 1099? See instructions b If .“Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . .

Enter the number of Forms 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, 17 attached to this return . . . . . . . . . . . . . . . . . . . . . . . . . .

18 Enter the number of partners that are foreign governments under section 892 .

19 During the partnership’s tax year, did the partnership make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474)? . . . .

Was the partnership a specified domestic entity required to file Form 8938 for the tax year? See the Instructions 20 for Form 8938. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

No

✓

13

0

✓ ✓

0 0

Is the partnership a section 721(c) partnership, as defined in Regulations section 1.721(c)-1(b)(14)? .

✓ ✓ ✓

. . . .

During the tax year, did the partnership pay or accrue any interest or royalty for which one or more partners are not allowed a deduction under section 267A? See instructions . . . . . . . . . . . . . . . . . ✓ If “Yes,” enter the total amount of the disallowed deductions . . . . . . . . . . $ Did the partnership have an election under section 163(j) for any real property trade or business or any farming 23 business in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . ✓ Does the partnership satisfy one or more of the following? See instructions. . . . . . . . . . . . .

24 ✓ a The partnership owns a pass-through entity with current, or prior year carryover, excess business interest expense. b The partnership’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $27 million and the partnership has business interest expense. c The partnership is a tax shelter (see instructions) and the partnership has business interest expense.

If “Yes” to any, complete and attach Form 8990. . . . . . . . . . .

25 Is the partnership attaching Form 8996 to certify as a Qualified Opportunity Fund? ✓ If “Yes,” enter the amount from Form 8996, line 15 . . . . . . . . . . . . .$ Enter the number of foreign partners subject to section 864(c)(8) as a result of transferring all or a portion of an 26 interest in the partnership or of receiving a distribution from the partnership . . . . .

Complete Schedule K-3 (Form 1065), Part XIII, for each foreign partner subject to section 864(c)(8) on a transfer or distribution.

At any time during the tax year, were there any transfers between the partnership and its partners subject to the 27 disclosure requirements of Regulations section 1.707-8? . . . . . . . . . . . . . . . . . . . ✓

21 22

0

28

Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties constituting a trade or business of your partnership, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the partners held more than 50% of the stock of the foreign corporation)? If “Yes,” list the ownership percentage by vote and by value. See instructions.

Percentage: Reserved for future use By vote: By value:

29 30

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Is the partnership electing out of the centralized partnership audit regime under section 6221(b)? See instructions.

If “Yes,” the partnership must complete Schedule B-2 (Form 1065). Enter the total from Schedule B-2, Part III, line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If “No,” complete Designation of Partnership Representative below.

✓ ✓

Designation of Partnership Representative (see instructions) Enter below the information for the partnership representative (PR) for the tax year covered by this return.

Bob Dapper 709 Brumby Way City, ST 54321 If the PR is an entity, name of the designated individual for the PR Name of PR U.S. address of PR

U.S. phone number of PR

U.S. address of designated individual

U.S. phone number of designated individual

(XXX) XXX-XXXX

Form 1065 (2022)

C:TRP-45 ..

C:9-57 Page 4

Form 1065 (2022)

Other Information

Alternative (AMT) Items Minimum Tax

International

Credits

SelfEmploy- Deductions ment

Income (Loss)

Schedule K

Partners’ Distributive Share Items

Total amount

. . . Expenses Ordinary business fromincome other (loss) rental (page activities 1, line (attach 22) statement) . . .. . . . .

1 Net rental Other net rental real estate income income (loss).(loss) Subtract (attach lineForm 3b from 8825) line 3a . . . . . .

2 . . . .

3a Other gross rental income (loss) . . . . . . . . . . . . b . . . . c Guaranteed payments:a Services 4a b Capital 4 c Total. Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . .

Interest income . . . . . . . . . . . . . .

5 Dividends and dividend equivalents:a Ordinary dividends . . . . .

6 b Qualified dividends c Dividend equivalents 6b Royalties . . . . . . . . . . . . . . . . . . . . .

7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . .

8 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . b .Collectibles (28%) gain (loss) . . . . . . . . . . . . . . section 1250 gain (attach statement) . . . . c Unrecaptured .Net section 1231 gain (loss) (attach Form 4797) . . . . . . . .

10 Other income (loss) (see instructions) Type: 11 12 Section 179 deduction (attach Form 4562) . . . . . . . . . .

13a Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Investment interest expense . c Section 59(e)(2) expenditures: (1) Type: d Other deductions (see instructions) Type: 14a Net earnings (loss) from self-employment . . . . . . . . . . . . b .Gross farming or fishing income . . . . . .. .. .. .. .. .. c

85,000

11,000

15a b c d e f 16

. . . .

3a 3b . .

4b . . . . . .

6c . . . . . .

9b 9c . . . . .

. . .

. .

. .

. .

. .

. .

1 2

.

.

.

.

.

3c

. . .

. . .

. . .

. . .

. . .

4c 5 6a

. . .

. . .

. . .

. . .

. . .

7 8 9a

.

.

.

.

.

10 11 12 13a 13b

. . . . . . . . . . . . . . .

(2) Amount:

(527,235 + 85,000). .. . . .

Gross nonfarm income .(From Page 1, Line 3)... .. .. ..

.. .. .. ..

. . ..

Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) .

Low-income housing credit (section 42(j)(5)) Low-income housing credit (other) . . . . . . .

.

Other rental real estate credits (see instructions) Other rental credits (see instructions) Type: Other credits (see instructions) Type:

Type:

527,235

85,000 11,000 (26,075) 18,000 5,050 16,400

13c(2)

13d 14a 14b 14c 15a 15b 15c 15d 15e 15f

612,235 1,004,950

Attach Schedule K-2 (Form 1065), Partners’ Distributive Share Items—International, and check this box to indicate that you are reporting items of international tax relevance . . . . .

Post-1986 depreciation adjustment . . . . . .

17a b c Adjusted gain or loss . . . . . . . . . . d e Depletion (other than oil and gas) . . . . . . f Oil, gas, and geothermal properties—gross income 18a Oil, gas, and geothermal properties—deductions . . Other AMT items (attach statement) . . . . . . Tax-exempt interest income . . . . . . . b . Other tax-exempt income . . . . . . . . . c Nondeductible . . . . . . . . expenses 19a . Distributions of cash and marketable securities . . of other property . . . . . . b Distributions 20a .Investment income . . . . . . . . . . . expenses . . . . . . . . . b Investment c Other items and amounts (attach statement) Total foreign taxes paid or accrued . . . . . .

21

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

17a 17b 17c 17d 17e 17f 18a 18b 18c 19a 19b 20a 20b

.

.

.

.

.

.

.

.

.

.

.

.

.

.

21

2,000 387,626 *11,000 Form 1065 (2022)

*$11,000 dividend is investment income if partners elect to tax dividends at ordinary rates under Sec. 163(d)(4)(B).

C:TRP-46 ..

C:9-57 Page 5

Form 1065 (2022)

Analysis of Net Income (Loss) per Return 1 2

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 21 . . . . . . . . . . . . . . . . . . . .

1 (ii) Individual (iii) Individual (i) Corporate (iv) Partnership (v) Exempt Analysis by (active) (passive) Organization partner type: General partners

a b Limited partners

Schedule L

292,524

15 16 17 18 19a b 20 21 22

1 2

3

. . . . . . . . . . . .

72,600

40,000

150,100

150,100 146,000 80,000

337,434 123,318

. . . . . . ..

180,000 465,000 173,100

214,116

291,900

185,000

240,000

901,766 35,000 44,000 22,616

1,128,000

210,000 590,150 901,766

275,000

46,000 52,000 31,666

723,334 1,128,000

Reconciliation of Income (Loss) per Books With Analysis of Net Income (Loss) per Return

520,810

Income included on Schedule K, lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not recorded on books this year (itemize): Guaranteed payments (other than health insurance) . . . . . . . . . .

Schedule M-2

4 5

10,000 72,600 200,050

Note: The partnership may be required to file Schedule M-3. See instructions.

Net income (loss) per books . . . .

Income recorded on books this year not included 6

Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 21 (itemize): a Depreciation $ b Travel and entertainment $ Add lines 1 through 4 . . . . . .

5

3

(d)

(c)

220,000

on Schedule K, lines 1 through 11 (itemize): a Tax-exempt interest $

2,000

85,000

7 a

Deductions included on Schedule K, lines 1 through 13d, and 21, not charged against book income this year (itemize): Depreciation $

8 9

Add lines 6 and 7 . . . . . . . .

Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5

6

Distributions: a Cash . . b Property .

Other decreases (itemize):

. .

Add lines 6 and 7 .

.

4

1 2

End of tax year

Beginning of tax year (a) (b)

Liabilities and Capital Accounts payable . . . . . .

Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . . .

All nonrecourse loans . . . . . . . . . . .

Loans from partners (or persons related to partners) .

Mortgages, notes, bonds payable in 1 year or more . .

Other liabilities (attach statement) . . . . . . . . . . . . .

Partners’ capital accounts . . .

Total liabilities and capital . . . . . . . .

Schedule M-1

(vi) Nominee/Other

311,286

Balance Sheets per Books

Assets .Cash . . . . . . . . . . . . . .

1 .Trade notes and accounts receivable . . . .

2a . . . . . . . . b Less allowance for bad debts . . . . .Inventories . . . . . . (attach . . statement) .

3 Other current .assets . . . . . .

U.S. Government obligations 4 Loans to partners (or persons related . . . . . to partners) 5 Tax-exempt securities . .

6 7a b Mortgage and real estate loans . . . . . .

Other investments (attach statement) . . . . .

8 . . .

9a Buildings and other depreciable assets . . . . . . . b Less accumulated depreciation . . . . . . . . . .

10a Depletable assets . . . . . accumulated depletion . . . b Less . . . .

Land (net of any amortization) . . .

11 . . . .

Intangible assets (amortizable only) .

12a . . . . b . Less accumulated amortization . . . . . .. Other assets (attach statement) . . .. .. ..

13 .

Total assets . . . . . . . . .

14

603,810

605,810

Analysis of Partners’ Capital Accounts

Balance at beginning of year . . .

Capital contributed: a Cash . . . b Property .. .

TaxNet income (loss) (see instructions)

590,150

603,810 exempt Other increases (itemize): interest2,000 Add lines 1 through 4 . . . . . .

1,195,960

7 8 9

. .

Guaranteed payments .

.

.

.

. .

. .

.

.

Balance at end of year. Subtract line 8 from line 5

C:TRP-47 ..

2,000

2,000 603,810 387,626 85,000 472,626 723,334

Form 1065 (2022)

C:9-57 Dapper - Dons Partnership XX-XXXXXXX 2022 Form 1065 Page 1, Line 20 - Other deductions Utilities expense Automobile expense Office supplies expense Advertising expense Travel expense ($11,020 − $4,050) Meals expense (100% deductible in 2022) Accounting and legal expense Total Page 4, Schedule K, Line Item Analysis Line No. Total 1 4 6a 8 9a 10 13a

$527,235 85,000 11,000 (26,075) 18,000 5,050 (16,400) $603,810

Dapper (40%) $210,894 85,000 4,400 (10,430) 7,200 2,020 (6,560) $292,524

$ 46,428 12,085 4,420 85,000 6,970 4,050 3,600 $162,553

Dons (60%) $316,341 -06,600 (15,645) 10,800 3,030 (9,840) $311,286

Page 5, Schedule L - Balance Sheet Line 6 - Other current assets

Marketable securities

Beginning of Tax Year $220,000

End of Tax Year $180,000

Beginning of Tax Year $14,000 3,416 5,200 $22,616

End of Tax Year $18,000 7,106 6,560 $31,666

Line 17 - Other current liabilities

Accrued salaries payable Payroll taxes payable Sales taxes payable

C:TRP-48 ..

C:9-57 SCHEDULE D (Form 1065)

Capital Gains and Losses

OMB No. 1545-0123

Attach to Form 1065 or Form 8865.

Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.

Department of the Treasury Internal Revenue Service

20 22

Go to www.irs.gov/Form1065 for instructions and the latest information.

Name of partnership

Employer identification number

XX-XXXXXXX

Dapper-Dons Partnership

. . .

If “Yes,” attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss.

Part I

.

.

Yes

X No

Short-Term Capital Gains and Losses—Generally Assets Held One Year or Less (see instructions)

lines below.

This form may be easier to complete if you round off cents to whole dollars.

(d) Proceeds (salesprice)

(e) Cost (or other basis)

73,925

100,000

(g) (h) Gain or (loss) Adjustments Subtract column (e) from column (d) and to gain or loss from Form(s) 8949, Part I, combine the result with line 2, column (g) column (g)

1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions).

However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b .

1b Totals for all transactions reported on Form(s) 8949 withBox A checked 2 Totals for all transactions reported on Form(s) 8949 withBox B checke.d . . . . . . . . . . .

*...........

(26,075)

.

3 Totals for all transactions reported on Form(s) 8949 withBox C checke.d .

.

.

.

.

.

.

.

.

.

.

.

4Short-term capital gain from installment sales from Form 6252, line 26 or 37 .

.

.

.

.

.

.

4

5Short-term capital gain or (loss) from like-kind exchanges from Form 8824 .

.

.

.

.

.

.

5

6 Partnership’s share of net short-term capital gain (loss), including specially allocated short-term capital gains (losses), from other partnerships, estates, and trusts . . . . . . . . . .

7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter hereand on Form 1065, Schedule K, line 8 or 11; or Form 8865, Schedule K, line 8 or 11. . . . . .

Part II

6 7

(26,075)

Long-Term Capital Gains and Losses—Generally Assets Held More Than One Year (see instructions)

lines below.

This form may be easier to complete if you round off cents to whole dollars.

(d) Proceeds (salesprice)

(e) Cost (or other basis)

(g) (h) Gain or (loss) Adjustments Subtract column (e) from column (d) and to gain or loss from Form(s) 8949, Part II, combine the result with line 2, column (g) column (g)

8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions).

However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b .

8b Totals for all transactions reported on Form(s) 8949 withBox D checked 9 Totals for all transactions reported on Form(s) 8949 withBox E checked . . . . . . . . . . . .

10 Totals for all transactions reported on Form(s) 8949 withBox F checked . . . . . . . . . . . .

11Long-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . .. . . . . .

12Long-term capital gain or (loss) from like-kind exchanges from Form 8824 13 Partnership’s share of net long-term capital gain (loss), including specially allocated long-term capital gains (losses), from other partnerships, estates, and trusts . . . . . . . . . . . . . . . . . . . .

14 Capital gain distributions (see instructions) . . . . . . . .

15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Enter hereand on Form 1065, Schedule K, line 9a or 11; or Form 8865, Schedule K, line 9a or 11. . . . .

**. . . . . . . . . . .

58,000

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

Note: Form 8949 not attached. *CD stock: acquired 2/12/22; sold 8/03/22. **AB stock: acquired 12/03/20; sold 6/16/22.

C:TRP-49 ..

18,000

40,000

Cat. No. 11393G

11 12 13 14 15

18,000 Schedule D (Form 1065) 2022

C:9-57 Form

1125-A

Cost of Goods Sold OMB No. 1545-0123

(Rev. November 2018) Department of the Treasury Internal Revenue Service Name

Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065.

Go to www.irs.gov/Form1125A for the latest information.

Employer identification number

Dapper-Dons Partnership

1 2 3 4 5 6 7

Inventory at beginning of year

. . . . . . .

Purchases . . . . . . . . . . . .

Cost of labor . . . . . . . . . .

Additional section 263A costs (attach schedule) . .

Other costs (attach schedule) . . . . . .

Total. Add lines 1 through 5 . . . . . . . . . . . . .

Inventory at end of year .

8

Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return. See instructions . . . . . . . . . . . . . . .

Check all methods used for valuing closing inventory:

9a

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

XX-XXXXXXX 200,050 624,000 600,000

1 2 3 4 5 6 7

54,000 1,478,050 146,000 1,332,050

8

(i) ✓Cost

d

Lower of cost or market (ii) Other (Specify method used and attach explanation.) (iii) Check if there was a writedown of subnormal goods . . . . . . . . . . . . . . . .

Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed

e

If property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions

.

Yes

✓ No

f

Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

✓ No

b c

under LIFO .

.

.

.

.

.

.

.

Section references are to the Internal Revenue Code unless otherwise noted.

What’s New Small business taxpayers. For tax years beginning after December 31, 2017, the following apply.

• A small business taxpayer (defined below), may use a method of accounting for inventories that either: (1) treats inventories as nonincidental materials and supplies, or (2) conforms to the taxpayer’s financial accounting treatment of inventories.

• A small business taxpayer is not required to capitalize costs under section 263A.

General Instructions Purpose of Form Use Form 1125-A to calculate and deduct cost of goods sold for certain entities.

Who Must File Filers of Form 1120, 1120-C, 1120-F, 1120S, or 1065, must complete and attach Form 1125-A if the applicable entity reports a deduction for cost of goods sold.

Inventories

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

merchandise is an income-producing factor. See Regulations section 1.471-1. If inventories are required, you generally must use an accrual method of accounting for sales and purchases of inventory items.

Exception for certain taxpayers. A small business taxpayer (defined below) can adopt or change its accounting method to account for inventories in the same manner as material and supplies that are nonincidental, or conform to its treatment of inventories in an applicable financial statement (as defined in section 451(b)(3)), or if it does not have an applicable financial statement, the method of accounting used in its books and records prepared in accordance with its accounting procedures. See section 471(c)(3).

A small business taxpayer claiming exemption from the requirement to keep inventories is changing its method of accounting for purposes of section 481.

For additional guidance on this method of accounting, see Pub. 538, Accounting Periods and Methods. For guidance on changing to this method of accounting, see Form 3115 and the Instructions for Form 3115.

Generally, inventories are required at the beginning and end of each tax year if the production, purchase, or sale of

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 55988R

C:TRP-50 ..

.

.

. .

. .

. .

.

. .

. .

. .

9d

Small business taxpayer. A small business taxpayer is a taxpayer that (a) has average annual gross receipts of $25 million or less (indexed for inflation) for the 3 prior tax years, and (b) is not a tax shelter (as defined in section 448(d)(3)). See Pub. 538.

Uniform capitalization rules. The uniform capitalization rules of section 263A generally require you to capitalize, or include in inventory, certain costs incurred in connection with the following.

• The production of real property and tangible personal property held in inventory or held for sale in the ordinary course of business.

• Real property or personal property (tangible and intangible) acquired for resale.

• The production of real property and tangible personal property for use in its trade or business or in an activity engaged in for profit.

A small business taxpayer (defined above) is not required to capitalize costs under section 263A. See section 263A(i).

See the discussion on section 263A uniform capitalization rules in the instructions for your tax return before completing Form 1125-A. Also see Regulations sections 1.263A-1 through 1.263A-3. See Regulations section 1.263A-4 for rules for property produced in a farming business.

Form 1125-A (Rev. 11-2018)

C:9-57

Sales of Business Property

OMB No. 1545-0184

(Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2))

20 22

Attach to your tax return.

Go to www.irs.gov/Form4797 for instructions and the latest information.

Attachment Sequence No. 27

4797

Form

Department of the Treasury Internal Revenue Service

Name(s) shown on return

Identifying number

Dapper-Dons Partnership 1a

XX-XXXXXXX

Enter the gross proceeds from sales or exchanges reported to you for 2022 on Form(s) 1099-B or 1099-S (or substitute statement) that you are including on line 2, 10, or 20. See instructions . . . . . . . . . .

1a

b

Enter the total amount of gain that you are including on lines 2, 10, and 24 due to the partial dispositions of MACRS assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1b

c

Enter the total amount of loss that you are including on lines 2 and 10 due to the partial dispositions of MACRS assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1c

Part I

Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft—Most Property Held More Than 1 Year (see instructions) (a) Description of property

2

Land

(b) Date acquired (mo., day, yr.)

(c) Date sold (mo., day, yr.)

(d) Gross sales price

03/17/18

08/15/22

35,050

(e) Depreciation allowed or allowable since acquisition

30,000

5,050

Gain, if any, from Form 4684, line 39 .Section . . 1231 . . gain . from . . installment . . . . . . . . .. sales from Form 6252, line 26 or 37. . . . . . . . .. . . . . . ..

Section 1231 gain or (loss) from like-kind exchanges from Form 8824. . . . . . .. .

Gain, if any, from line 32, from other than casualty or theft . . .

Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows .

. . . . .

3 4 5 6 7

8

Partnerships and S corporations. Report the gain or (loss) following the instructions for Form 1065, Schedule K, line 10, or Form 1120-S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below.

Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you didn’t have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule D filed with your return and skip lines 8, 9, 11, and 12 below.

Nonrecaptured net section 1231 losses from prior years. See instructions . . . . . . . . . . . .

8

Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule D filed with your return. See instructions. . . . . . . . . . . . . .

9

Part II

. . . . .

(g) Gain or (loss) Subtract (f) from the sum of (d) and (e)

3 4 5 6 7

9

. . . . .

(f) Cost or other basis, plus improvements and expense of sale

. . . . .

5,050

Ordinary Gains and Losses (see instructions)

10

Ordinary gains and losses n o t included on lin e s 11 through 16 (i n c lude property hel d 1 year or less):

11 12 13 14 15 16 17

Loss, if any, from line 7 Gain, . . if. any, . from . . line . 7. or. amount . . . . . from line 8, if applicable. . . . . . . .

Gain, if any, from line 31. Net . gain . .or .(loss) . from . . Form . . 4684, . lines . . .

31 and 38a. Ordinary gain from installment sales from .Form 6252, line 25 or 36 Ordinary gain or (loss) from like-kind exchanges from . .

Form 8824 . . .

Combine lines 10 through 16. . . . . . . . . . .

18

. . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

11 ( 12 13 14 15 16 17

)

For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below. For individual returns, complete lines a and b below.

If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter the loss a from income-producing property on Schedule A (Form 1040), line 16. (Do not include any loss on property used as an .

18a

b Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Schedule 1 (Form 1040), Part I, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 13086I

18b

employee.) Identify as from “Form 4797, line 18a.” See instructions.

.

.

C:TRP-51 ..

.

.

.

.

.

.

.

.

.

.

.

Form 4797 (2022)

C:9-57 651121 Final K-1

Schedule K-1 (Form 1065)

Part III Partner’s Share of Current Year Income, Deductions, Credits, and Other Items

20 22

Department of the Treasury Internal Revenue Service /

2022

/

/

ending

/

Partner’s Share of Income, Deductions, Credits, etc.

See separate instructions.

Part I

Information About the Partnership

A

Partnership’s employer identification number

B

Partnership’s name, address, city, state, and ZIP code

xx-xxxxxxx

Dapper-Dons Partnership 123 Flamingo Drive City, ST 54321

Center City, ST

IRS center where partnership filed return:

C D

14

Net rental real estate income (loss)

A C

Self-employment earnings (loss)

3

Other net rental income (loss)

15

Credits

4a

Guaranteed payments for services

4b

Guaranteed payments for capital

16

Schedule K-3 is attached if checked . . . . .

4c

Total guaranteed payments

17

Alternative minimum tax (AMT) items

5

Interest income

6a

Ordinary dividends

6b

Qualified dividends

18

Tax-exempt income and nondeductible expenses

6c

Dividend equivalents

A

1,200

7

Royalties

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

9c

Unrecaptured section 1250 gain

1

Ordinary business income (loss)

2

316,341

For calendar year 2022, or tax year

beginning

6,600

Check if this is a publicly traded partnership (PTP)

Part II E

F

G H1 H2

Information About the Partner

6,600

Partner’s SSN or TIN (Do not use TIN of a disregarded entity. See instructions.)

xxx-xx-xxxx

*316,341 *551,970

Name, address, city, state, and ZIP code for partner entered in E. See instructions.

Jeremy Dons 807 Ninth Avenue City, ST 54321

x x

General partner or LLC member-manager

Limited partner or other LLC member

Domestic partner

Foreign partner

(15,645)

10,800 9b Collectibles (28%) gain (loss)

If the partner is a disregarded entity (DE), enter the partner’s:

I1

TIN Name What type of entity is this partner?

I2

If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here

10

Net section 1231 gain (loss)

J

Partner’s share of profit, loss, and capital (see instructions): Beginning Ending

11

Other income (loss)

12

Section 179 deduction

13

Other deductions

Individual

60 % 60 % 60 %

Profit Loss Capital

60 % 60 % 60 %

Check if decrease is due to sale or exchange of partnership interest K

OMB No. 1545-0123

Amended K-1

. .

19

A

Distributions

20

Other information

232,576

*See schedule on next page.

3,030

21

Foreign taxes paid or accrued

Partner’s share of liabilities: Beginning Nonrecourse

.

.

$

Qualified nonrecourse financing . . .

Recourse . . .

$ $

Ending

186,970

9,840

A

$

$ $

242,800

Check this box if Item K includes liability amounts from lower tier partnerships Partner’s Capital Account Analysis .

.

$$

Capital contributed during the year .

.

$$

Beginning capital account

.

. . $( $ Other increase (decrease) (attach explanation) Current year net income (loss) .

Withdrawals and distributions .

.

.

.

.

.

Ending capital account

M

x

No

362,286 (49,800) 232,576 434,000

)

If “Yes,” attach statement. See instructions.

Partner’s Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning

.

.

.

.

.

.

.

.

$

Ending .

.

.

.

.

.

.

.

.

$

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

More than one activity for at-risk purposes*

23

More than one activity for passive activity purposes*

*See attached statement for additional information.

Did the partner contribute property with a built-in gain (loss)?

Yes

N

.

354,090

22

0 0

For IRS Use Only

L

www.irs.gov/Form1065

C:TRP-52 ..

Cat. No. 11394R

Schedule K-1 (Form 1065) 2021

C:9-57 Dapper-Dons Partnership XX-XXXXXXX 2022 Form 1065 Schedule K-1 Jeremy Dons – Part II, Item L, Partner᾽s Capital Account Analysis: This analysis is done using tax basis capital account numbers, which are the same as the Sec. 704(b) book numbers for this partnership. The “Other increase (decrease)” relates to tax-exempt interest and guaranteed payments (see Form 1065 Schedule M-2).

Schedule K-1 Jeremy Dons – Part III, 14, Self-employment earnings: $316,341 ordinary income from Line 1 [($1,004,950 gross profit – $85,000 guar. pmt. to Bob) × 0.60] Schedule K-1 Jeremy Dons – Part III, 20, Other information:

A

$316,341 C $551,970

Investment income [dividends are inv. inc. only to the extent a partner elects to tax them at ordinary rates under Sec. 163(d)(4)(B)] A 6,600 Z 316,341 Sec. 199A QBI (Ordinary income from Line 1) Sec. 199A W-2 wages (including wages from Form 1125-A, 390,600 Line 3; $651,000 × 0.60) Z 279,000 Sec. 199A unadjusted basis of property ($465,000 × 0.60) Z

C:TRP-53 ..

C:9-57 651121 Final K-1

Schedule K-1 (Form 1065)

Part III Partner’s Share of Current Year Income, Deductions, Credits, and Other Items

20 22

Department of the Treasury Internal Revenue Service /

2022

/

/

ending

/

Partner’s Share of Income, Deductions, Credits, etc.

See separate instructions.

Part I

14

Net rental real estate income (loss)

A C

Self-employment earnings (loss)

3

Other net rental income (loss)

15

Credits

4a

Guaranteed payments for services

4b

Guaranteed payments for capital

16

Schedule K-3 is attached if checked . . . . .

4c

Total guaranteed payments

17

Alternative minimum tax (AMT) items

Tax-exempt income and nondeductible expenses

1

Ordinary business income (loss)

2

210,894

For calendar year 2022, or tax year

beginning

Information About the Partnership

85,000

Partnership’s employer identification number

A

xx-xxxxxxx

Partnership’s name, address, city, state, and ZIP code

B

Dapper-Dons Partnership 123 Flamingo Drive City, ST 54321

Center City, ST

IRS center where partnership filed return:

C D

5

85,000 Interest income

6a

Ordinary dividends

6b

Qualified dividends

18

6c

Dividend equivalents

A

7

Royalties

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

9c

Unrecaptured section 1250 gain

4,400

Check if this is a publicly traded partnership (PTP)

Part II E

F

G H1 H2

Information About the Partner

4,400

Partner’s SSN or TIN (Do not use TIN of a disregarded entity. See instructions.)

xxx-xx-xxxx

*295,894 *452,980

800

Name, address, city, state, and ZIP code for partner entered in E. See instructions.

Bob Dapper 709 Brumby Way City, ST 54321

x x

General partner or LLC member-manager

Limited partner or other LLC member

Domestic partner

Foreign partner

(10,430)

7,200 9b Collectibles (28%) gain (loss)

If the partner is a disregarded entity (DE), enter the partner’s:

TIN

Name

Individual

I1

What type of entity is this partner?

I2

If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here

10

Net section 1231 gain (loss)

J

Partner’s share of profit, loss, and capital (see instructions): Beginning Ending

11

Other income (loss)

12

Section 179 deduction

13

Other deductions

40 % 40 % 40 %

Profit Loss Capital

40 % 40 % 40 %

Check if decrease is due to sale or exchange of partnership interest K

OMB No. 1545-0123

Amended K-1

. .

19

A

Distributions

20

Other information

155,050

*See schedule on next page.

2,020

21

Foreign taxes paid or accrued

Partner’s share of liabilities: Beginning Nonrecourse

.

.

$

Qualified nonrecourse financing . . .

Recourse . . .

$ $

Ending

124,646

$ $

6,560

A

$

161,866

Check this box if Item K includes liability amounts from lower tier partnerships Partner’s Capital Account Analysis .

.

$$

Capital contributed during the year .

.

$$

Beginning capital account

.

. . $( $ Other increase (decrease) (attach explanation)

Current year net income (loss) .

Withdrawals and distributions .

.

.

.

.

.

Ending capital account

M

x

No

241,524 (33,200) 155,050 289,334

)

If “Yes,” attach statement. See instructions.

Partner’s Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning

.

.

.

.

.

.

.

.

$

Ending .

.

.

.

.

.

.

.

.

$

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

More than one activity for at-risk purposes*

23

More than one activity for passive activity purposes*

*See attached statement for additional information.

Did the partner contribute property with a built-in gain (loss)?

Yes

N

.

236,060

22

0 0

For IRS Use Only

L

www.irs.gov/Form1065

C:TRP-54 ..

Cat. No. 11394R

Schedule K-1 (Form 1065) 2021

C:9-57 Dapper-Dons Partnership XX-XXXXXXX 2022 Form 1065 Schedule K-1 Bob Dapper – Part II, Item L, Partner’s Capital Account Analysis: This analysis is done using tax basis capital account numbers, which are the same as the Sec. 704(b) book numbers for this partnership. The “Other increase (decrease)” relates to tax-exempt interest and guaranteed payments (see Form 1065 Schedule M-2).

Schedule K-1 Bob Dapper – Part III, 14, Self-employment earnings: $210,894 ordinary income + $85,000 guaranteed payment [($1,004,950 gross profit – $85,000 guar. pmt.) × 0.40] + $85,000 Schedule K-1 Bob Dapper – Part III, 20, Other information: Investment income [dividends are inv. inc. only to the extent a partner elects to tax them at ordinary rates under Sec. 163(d)(4)(B)] Sec. 199A QBI (Ordinary income from Line 1) Sec. 199A W-2 wages (including wages from Form 1125-A, Line 3; $651,000 × 0.40) Sec. 199A unadjusted basis of property ($465,000 × 0.40)

C:TRP-55 ..

A $295,894 C $452,980

A Z Z Z

4,400 210,894 260,400 186,000

C:9-58

Form

1065

U.S. Return of Partnership Income For calendar year 2022, or tax year beginning

Department of the Treasury Internal Revenue Service A Principal business activity

OMB No. 1545-0123

, 2022, ending

, 20

.

D Employer identification number

Name of partnership

Healthwise Medical Supplies Company Manufacturing Number, street, and room or suite no. If a P.O. box, see instructions.

B Principal product or service Type or Med. Equip.

2400 Second Street C Business code number

Print

XX-2024022

E Date business started

1/1/21

City or town, state or province, country, and ZIP or foreign postal code

F Total assets (see instructions)

City, ST 12345

339110 G H I J

20 22

Go to www.irs.gov/Form1065 for instructions and the latest information.

(1) Check applicable boxes: Check accounting method:(1)

Initial return Cash

(2)

$ Final return

(2) ✓Accrual

(3) (3)

Name change (4) Other (specify):

Address change

Amended return

2

Number of Schedules K-1. Attach one for each person who was a partner at any time during the tax year:

Check if Schedules C and M-3 are attached . . . . . . . . . . . . .

Aggregated activities for section 465 at-risk purposes (2) K Check if partnership: (1)

4,612,280

(5)

. . . . . . . . . . . . . . . .

Grouped activities for section 469 passive activity purposes

Caution: Include only trade or business income and expenses on lines 1a through 22 below. See instructions for more information.

1a Gross receipts or sales. Returns . . .and. allowances . . . .. . . . . . . . . . . . . . . . . . . . . . . . b Balance. Subtract line 1b from line 1a .

1b . . . . . . . . . . . c Cost of goods sold (attach Form 1125-A) . . . . . . . .

1c . . . . . . . . . .

2 Gross profit. Subtract line 2 from line 1c . . . . . . . . .

2 . . . . . . . . . .

3 Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) . . . . .. . . .

3 4 . . . .

4 5 .Net farm profit (loss) (attach Schedule F (Form 1040)) . . . . . . . . . . . . .

5 6 .Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) . . . . . . . . .

6 7 .Other . . .

7 . . . . . . . income (loss) (attach statement) . . . . . . . .

8 .. . . .

8 . . . . . .

Combine lines 3 through 7 . Total . . income . . (loss).

9 . . . .

9 . . . .

Salaries and wages (other than to partners) (less employment credits) .

10 . . . .

10 . . . . .

11 . Guaranteed payments to partners . . . . . . . . . . . . . . .

11 . . . . .

12 .Repairs and maintenance . . . . . . . . . . . . . . . . . .

12 . . . . . Bad debts . . . . . . . . . . . . . . . . . . . .

13 . . . .

13 . . . . .Rent . . . . . . . . . . . . . . . . . . . . . . . . . .

14 . . . . . . . . . . . . . . . . . . .

14 .

Taxes and licenses . . . . .

15 . . . . . . . . . . . . . . . .

Interest (see instructions). . .

15 .

16a .

16a Depreciation (if required, attach Form 4562) . . . . . . . . . b Less depreciation reported on Form 1125-A and elsewhere on return . 16b 16c . . . . . .

17 Depletion (Do not deduct oil and gas depletion.) . . . . . . . . .

17 . . . . . .

18 . . .

18 Retirement plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . .

19 Employee benefit programs . . . . . . . . . . . . . .

19 . . . . . .

20 . . .

20 Other deductions (attach statement) . . . . . . . . . . .

21 Add the amounts shown in the far right column for lines 9 through 20 . . .

21 Total deductions.

22 22 Ordinary business income (loss). Subtract line 21 from line 8 . . . . . . . . . . .

Interest due under the look-back method—completed long-term contracts (attach Form 8697) .

23 23 .

24 24 Interest due under the look-back method—income forecast method (attach Form 8866). . .

25 25 ..

BBA AAR imputed underpayment (see instructions) . . . . . . . . . . . . .

26 26 .. . . . . . . . . . . . .

Other taxes (see instructions) . . . . . . . .

27 .. . . . . . . . . . . . .

27 Total balance due. Add lines 23 through 26 . . .

28 . . . . . . . . . . . . . .

28 Payment (see instructions) . . . . . . . . .

29 ..

29 Amount owed. If line 28 is smaller than line 27, enter amount owed . . . . . . . .

30 . .

30 . . . . . .

Overpayment. If line 28 is larger than line 27, enter overpayment .

Income

1a 7,000,000 350,000

6,650,000 2,520,000 4,130,000

Deductions (see instructions for limitations)

4,130,000 980,000 200,000 45,500 210,000 98,000 33,600

391,840*

391,840

Tax and Payment

280,000 2,238,940 1,891,060

Sign Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than partner or limited liability company member) is based on all information of which preparer has any knowledge.

Leisa H. Bailey Date

Signature of partner or limited liability company member Print/Type preparer’s name

Paid Preparer Firm’s name Use Only Firm’s address

3-11-23 Date

Preparer’s signature

May the IRS discuss this return with the preparer shown below?

See instructions. Yes No Check if self-employed

PTIN

Firm’s EIN Phone no.

Cat. No. 11390Z

For Paperwork Reduction Act Notice, see separate instructions.

*Note: Sec. 179 expenses are separately stated on Schedule K. Also see Form 4562 below.

C:TRP-56 ..

Form 1065 (2022)

C:9-58 Page 2

Form 1065 (2022)

Schedule B 1 a c e 2 a

Other Information

What type of entity is filing this return? Check the applicable box: Yes ✓Domestic general partnership b Domestic limited partnership d Domestic limited liability partnership Domestic limited liability company f Other: Foreign partnership At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or taxexempt organization, or any foreign government own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information on Partners Owning 50% or More of the Partnership . . . . . . . . . . . . . . .

b Did any individual or estate own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership? For rules of constructive ownership, see instructions. If “Yes,” attach Schedule B-1, Information . . . . . . . . . . . . . . . . . . on Partners Owning 50% or More of the Partnership*..

3 a

✓

(ii)

Employer Identification Number (if any)

(iii) Country of Incorporation

(iv) Percentage Owned in Voting Stock

b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below .. (ii) Employer Identification Number (if any)

(i) Name of Entity

(iii) Type of Entity

(iv) Country of Organization

✓

(v) Maximum Percentage Owned in Profit, Loss, or Capital

Yes

4

✓

✓

At the end of the tax year, did the partnership: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation? For rules of constructive ownership, see instructions.

If “Yes,” complete (i) through (iv) below . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

No

No

Does the partnership satisfy all four of the following conditions? a The partnership’s total receipts for the tax year were less than $250,000. b The partnership’s total assets at the end of the tax year were less than $1 million. c Schedules K-1 are filed with the return and furnished to the partners on or before the due date (including extensions) for the partnership return.

. . . . . . . . . . . . . . . d The partnership is not filing and is not required to file Schedule M-3 If “Yes,” the partnership is not required to complete Schedules L, M-1, and M-2; item F on page 1 of Form 1065; or item L on Schedule K-1.

5 Is this partnership a publicly traded partnership as defined in section 469(k)(2)? . . . . . . . . . . . .

6 During the tax year, did the partnership have any debt that was cancelled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . .

Has this partnership filed, or is it required to file, Form 8918, Material Advisor Disclosure Statement, to provide 7 information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . . . . .

8 At any time during calendar year 2022, did the partnership have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)?

See instructions for exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If “Yes,” enter the name of the foreign country 9 At any time during the tax year, did the partnership receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If “Yes,” the partnership may have to file Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. See instructions . . . . . . . . . . . . . . .

10a Is the partnership making, or had it previously made (and not revoked), a section 754 election?

See instructions for details regarding a section 754 election. b Did the partnership make for this tax year an optional basis adjustment under section 743(b) or 734(b)? If “Yes,” attach a statement showing the computation and allocation of the basis adjustment. See instructions . . . . c Is the partnership required to adjust the basis of partnership assets under section 743(b) or 734(b) because of a substantial built-in loss (as defined under section 743(d)) or substantial basis reduction (as defined under section 734(d))? If “Yes,” attach a statement showing the computation and allocation of the basis adjustment. See instructions

*Schedule B-1 is not attached. If attached, with these facts, it would list Thomas J. Firth, who owns a 70% interest.

C:TRP-57 ..

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Form 1065 (2022)

C:9-58 Page 3

Form 1065 (2022)

Schedule B

Other Information (continued)

11

Check this box if, during the current or prior tax year, the partnership distributed any property received in a likekind exchange or contributed such property to another entity (other than disregarded entities wholly owned by the partnership throughout the tax year) . . . . . . . . . . . . . . . . . . . . . . . . .

12

At any time during the tax year, did the partnership distribute to any partner a tenancy-in-common or other undivided interest in partnership property? . . . . . . . . . . . . . . . . . . . . . .

.

Yes

.

If the partnership is required to file Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs), enter the number of Forms 8858 attached. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Does the partnership have any foreign partners? If “Yes,” enter the number of Forms 8805, Foreign Partner’s 14 . . . . . . .

Information Statement of Section 1446 Withholding Tax, filed for this partnership . . ..

Enter the number of Forms 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships, attached 15 to this return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16a Did you make any payments in 2022 that would require you to file Form(s) 1099? See instructions b If .“Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . .

Enter the number of Forms 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations, 17 attached to this return . . . . . . . . . . . . . . . . . . . . . . .

Enter the number of partners that are foreign governments under section 892 . . . .

18 19 During the partnership’s tax year, did the partnership make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474)? . . . .

Was the partnership a specified domestic entity required to file Form 8938 for the tax year? See the Instructions 20 for Form 8938. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

No

✓

13

0

✓ ✓

0 0

21

Is the partnership a section 721(c) partnership, as defined in Regulations section 1.721(c)-1(b)(14)? .

.

.

.

.

✓ ✓ ✓

22

During the tax year, did the partnership pay or accrue any interest or royalty for which one or more partners are not allowed a deduction under section 267A? See instructions . . . . . . . . . . . . . . . . . ✓ If “Yes,” enter the total amount of the disallowed deductions . . . . . . . . . . $ Did the partnership have an election under section 163(j) for any real property trade or business or any farming 23 business in effect during the tax year? See instructions . . . . . . . . . . . . . . . . . . . . ✓ Does the partnership satisfy one or more of the following? See instructions. . . . . . . . . . . . .

24 ✓ a The partnership owns a pass-through entity with current, or prior year carryover, excess business interest expense. b The partnership’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $27 million and the partnership has business interest expense. c The partnership is a tax shelter (see instructions) and the partnership has business interest expense.

If “Yes” to any, complete and attach Form 8990. . . . . . . . . . .

25 Is the partnership attaching Form 8996 to certify as a Qualified Opportunity Fund? ✓ If “Yes,” enter the amount from Form 8996, line 15 . . . . . . . . . . . . .$ Enter the number of foreign partners subject to section 864(c)(8) as a result of transferring all or a portion of an 26 interest in the partnership or of receiving a distribution from the partnership . . . . .

Complete Schedule K-3 (Form 1065), Part XIII, for each foreign partner subject to section 864(c)(8) on a transfer or distribution.

At any time during the tax year, were there any transfers between the partnership and its partners subject to the 27 disclosure requirements of Regulations section 1.707-8? . . . . . . . . . . . . . . . . . . . ✓

0

28

29 30

Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties constituting a trade or business of your partnership, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the partners held more than 50% of the stock of the foreign corporation)? If “Yes,” list the ownership percentage by vote and by value. See instructions.

Percentage: Reserved for future use By vote: By value: Is the partnership electing. out If . of . the . .centralized . . . partnership . . . . audit . . regime . . . under . . section . . . 6221(b)? . . . See . . instructions. . . .

“Yes,” the partnership must complete Schedule B-2 (Form 1065). Enter the total from Schedule B-2, Part III, line 3. . . . . . . . . . . . . . . . . . . . . .

If “No,” complete Designation of Partnership Representative below.

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✓ ✓

.

Designation of Partnership Representative (see instructions) Enter below the information for the partnership representative (PR) for the tax year covered by this return.

Name of PR U.S. address of PR

Leisa H. Bailey

U.S. phone number of PR

If the PR is an entity, name of the designated individual for the PR U.S. address of designated individual

1200 First Pike City, ST 12345

(XXX) XXX-XXXX

U.S. phone number of designated individual Form 1065 (2022)

C:TRP-58 ..

C:9-58 Page 4

Form 1065 (2022)

Other Information

Alternative (AMT) Items Minimum Tax

International

Credits

SelfEmploy- Deductions ment

Income (Loss)

Schedule K

Partners’ Distributive Share Items

Total amount

Ordinary . . . Expenses business fromincome other (loss) rental (page activities 1, line (attach 22) statement) . . .. . . . . . . . . . . .

1 Net Other rental net rental real estate income income (loss).(loss) Subtract (attach lineForm 3b from 8825) line 3a . . . . . . . . . . . . .

2 . . . .

3a Other gross rental income (loss) . . . . . . . .

3a . . . .

3b b . . . . . . . . . . . c Guaranteed payments:a Services 4a b Capital 4b 4 c Total. Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest income . . . . . . . . . . . . . .

5 Dividends and dividend equivalents:a Ordinary dividends . . . . . . . . . . . .

6 b Qualified dividends c Dividend equivalents 6c 6b Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . .

8 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . b .Collectibles (28%) gain (loss) . . . . . . . . . . . .

9b . . . . . c .Unrecaptured section 1250 gain (attach statement) 9c .Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . .

10 Other income (loss) (see instructions) Type: 11 12 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . .

13a Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Investment interest expense .

(2) Amount: c Section 59(e)(2) expenditures: (1) Type: d Other deductions (see instructions) Net earnings (loss) from self-employment 14a . . .. .

Gross farming or fishing income . .. . . . . . . . . . . . . . . . . . . b . . .. . . . . . . . . . . . .. . c Gross nonfarm income . . . . . . . .

Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) . .

15a Low-income housing credit (section 42(j)(5)) b Low-income housing credit (other) . . . . . . . c d Other rental real estate credits (see instructions) Type: e Other rental credits (see instructions) Type: f Other credits (see instructions) Type:

200,000

26,400

Type: Investment expenses (1,891,060 + 200,000).

(From Page 1, Line 3)

16

1 2

1,891,060

3c 4c 5 6a 7 8 9a

10 11 12 13a 13b 13c(2)

13d 14a 14b 14c 15a 15b 15c 15d 15e 15f

200,000 26,400 1,344,000

700,000 56,000 4,200 7,200 2,091,060 4,130,000

Attach Schedule K-2 (Form 1065), Partners’ Distributive Share Items—International, and check this box to indicate that you are reporting items of international tax relevance . . . . .

Post-1986 depreciation adjustment . . . . . .

17a b c Adjusted gain or loss . . . . . . . . . . d e Depletion (other than oil and gas) . . . . . . f Oil, gas, and geothermal properties—gross income 18a Oil, gas, and geothermal properties—deductions . . Other AMT items (attach statement) . . . . . . Tax-exempt interest income . . . . . . . b . Other tax-exempt income . . . . . . . . . c Nondeductible . . . . . . . . expenses 19a . Distributions of cash and marketable securities . . of other property . . . . . . b Distributions .

20a Investment income . . . . . . . . . . . expenses . . . . . . . . . b Investment c Other items and amounts (attach statement) Total foreign taxes paid or accrued . . . . . .

21

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17a 17b 17c 17d 17e 17f 18a 18b 18c 19a 19b 20a 20b

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21

2,000 2,000,000 26,400* 7,200 Form 1065 (2022)

*Investment income if partners elect to tax dividends at ordinary rates under Sec. 163(d)(4)(B).

C:TRP-59 ..

C:9-58 Page 5

Form 1065 (2022)

Analysis of Net Income (Loss) per Return 1 2

Net income (loss). Combine Schedule K, lines 1 through 11. From the result, subtract the sum of Schedule K, lines 12 through 13d, and 21 . . . . . . . . . . . . . . . . . . . .

1 (ii) Individual (iii) Individual (iv) Partnership (i) Corporate (v) Exempt Analysis by (active) (passive) Organization partner type: General partners

Balance Sheets per Books

Assets .Cash . . . . . . . . . . . . . .

1 .Trade notes and accounts receivable . . . .

2a . . . . . . . b . Less allowance for bad debts . . . . . . . .

3 Inventories . . . . . . . . . . . .

U.S. Government obligations 4 . .

Other current assets (attach statement) . . . .

5 Tax-exempt securities . . related to partners) Loans to partners (or persons 6 7a b Mortgage and real estate loans . . . . . .

Other investments (attach statement) . . . . .

8 Buildings and other depreciable assets . . . . . . .

9a . . . . . accumulated depreciation . . b Less . . .

10a .Depletable assets . . . . . . . . . . . . . b .Less accumulated depletion . . . . . .

Land (net of any amortization) .

11 . . . . assets (amortizable only) .

12a Intangible . . . b .. Less accumulated amortization . . . . . . Other assets (attach statement) . . . . .

13 . . . .

14 Total assets . . . . . .

15 16 17 18 19a b 20 21 22

1

Beginning of tax year (a) (b)

. . . . . . . . . . . . . . . . . . . .

756,000 -0-

1,600,000 228,640

480,000 1,371,360 2,300,000 1,320,480

-0979,520

5,016,260 140,000 700,000 4,900

4,612,280

4,171,360 5,016,260

4,283,420 4,612,280

182,000 140,000 6,860

2,112,060 384,000 on Schedule K, lines 1 through 11 (itemize): 200,000 a Tax-exempt interest $ 2,000 books this year (itemize):P recontrib. gain

3

Guaranteed payments (other than health insurance) . . . . . . . . . .

Expenses recorded on books this year not included on Schedule K, lines 1 through 13d, and 21 (itemize): a Depreciation $ b Travel and entertainment $ Add lines 1 through 4 . . . . . .

5

7 a

4

Schedule M-2

4 5

840,000 -0-

Note: The partnership may be required to file Schedule M-3. See instructions.

Net income (loss) per books . . . .

Income recorded on books this year not included 6

Income included on Schedule K, lines 1, 2, 3c, 5, 6a, 7, 8, 9a, 10, and 11, not recorded on

3

(d)

1,062,760 840,000 1,680,000 50,000

Reconciliation of Income (Loss) per Books With Analysis of Net Income (Loss) per Return

2

1 2

End of tax year (c)

958,900 756,000 1,400,000 50,000

Liabilities and Capital Accounts payable . . . . . .

Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . . . .

All nonrecourse loans . . . . . . . . . .

Loans from partners (or persons related to partners) .

Mortgages, notes, bonds payable in 1 year or more . .

Other liabilities (attach statement) . . . . . . . . . . . . .

Partners’ capital accounts . . . . . . . . .

Total liabilities and capital . .

Schedule M-1

(vi) Nominee/Other

2,694,060

a b Limited partners

Schedule L

2,694,060

2,696,060

Deductions included on Schedule K, lines 1 through 13d, and 21, not charged against book income this year (itemize): Depreciation $

8 9

Add lines 6 and 7 . . . . . . . .

Income (loss) (Analysis of Net Income (Loss), line 1). Subtract line 8 from line 5

6 7

Distributions: a Cash . . b Property .

Other decreases (itemize):

8

Add lines 6 and 7 .

Analysis of Partners’ Capital Accounts

Balance at beginning of year . .

Capital contributed: a Cash . . b Property .

Net income (loss) (see instructions)

. . . .

3,787,360*

2,694,060 Tax-exempt 2,000 Other increases (itemize):interest 6,483,420 Add lines 1 through 4 .

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9

2,000

. .

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Guaranteed payments

. .

2,000 2,694,060 2,000,000 200,000

2,200,000 4,283,420 Balance at end of year. Subtract line 8 from line 5 .

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.

Form 1065 (2022)

*The Schedule L balance sheet reports Sec. 704(b) book amounts, including Line 21, partners’ capital accounts. Schedule M-2 reports partners’ capital accounts using tax basis amounts consistent with Item L in Schedules K-1. If the Schedule M-2 analysis were done using Sec. 704(b) book numbers, the amounts for Lines 1, 3, and 5 would be $4,171,360 + $2,112,060 = $6,283,420, which, after subtracting $2,000,000, tie to Schedule L, Line 21 above.

C:TRP-60 ..

C:9-58 Healthwise Medical Supplies Company XX-2024022 2022 Form 1065 Page 1, Line 20 - Other deductions $ 49,000 28,000 84,000 42,000 70,000 7,000 $280,000

General insurance Travel Utilities Advertising expense Professional fees Business meals Total

C:TRP-61 ..

C:9-58 SCHEDULE D (Form 1065) Department of the Treasury Internal Revenue Service

Capital Gains and Losses

OMB No. 1545-0123

Attach to Form 1065 or Form 8865.

Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.

20 22

Go to www.irs.gov/Form1065 for instructions and the latest information.

Name of partnership

Employer identification number

XX-2024022

Healthwise Medical Supplies Company

qualified . . .

If “Yes,” attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss.

Part I

. .

.

Yes

X No

Short-Term Capital Gains and Losses—Generally Assets Held One Year or Less (see instructions)

See instructions for how to figure the amounts to enter on the lines below.

This form may be easier to complete if you round off cents to whole dollars.

(d) Proceeds (salesprice)

(g) (h) Gain or (loss) Adjustments Subtract column (e) from column (d) and to gain or loss from Form(s) 8949, Part I, combine the result with line 2, column (g) column (g)

(e) Cost (or other basis)

1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions).

However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b .

1b Totals for all transactions reported on Form(s) 8949 with Box A checked. . . . . . . . . . .

2 Totals for all transactions reported on Form(s) 8949 with Box B checked. . . . . . . . . . .

3 Totals for all transactions reported on Form(s) 8949 with Box C checked. . . . . . . . . . .

. . .

4Short-term capital gain from installment sales from Form 6252, line 26 or 37 .

.

4

5Short-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . . . . .

6 Partnership’s share of net short-term capital gain (loss), including specially allocated short-term capital gains (losses), from other partnerships, estates, and trusts . . . . . . . . . .

7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter hereand on Form 1065, Schedule K, line 8 or 11; or Form 8865, Schedule K, line 8 or 11. . . . . .

5

Part II

.

.

.

.

.

6 7

Long-Term Capital Gains and Losses—Generally Assets Held More Than One Year (see instructions)

See instructions for how to figure the amounts to enter on the lines below.

This form may be easier to complete if you round off cents to whole dollars.

(d) Proceeds (salesprice)

(e) Cost (or other basis)

(h) Gain or (loss) (g) Adjustments Subtract column (e) from column (d) and to gain or loss from Form(s) 8949, Part II, combine the result with line 2, column (g) column (g)

8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions).

However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b .

8b Totals for all transactions reported on Form(s) 8949 with Box D checked. . . . . . . . . . . .

9 Totals for all transactions reported on Form(s) 8949 with Box E checked. . . . . . . . . . . .

10 Totals for all transactions reported on Form(s) 8949 with Box F checked. . . . . . . . . . . .

11Long-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . .

12Long-term capital gain or (loss) from like-kind exchanges from Form 8824 .. . . . . .

13 Partnership’s share of net long-term capital gain (loss), including specially allocated long-term capital gains (losses), from other partnerships, estates, and trusts . . . . . . . . . . . . . . . . . . . .

14 Capital gain distributions (see instructions) . . . . . . . .

15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Enter hereand on Form 1065, Schedule K, line 9a or 11; or Form 8865, Schedule K, line 9a or 11. . . . .

1,440,000

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

C:TRP-62 ..

96,000

Cat. No. 11393G

11 12

1,344,000

13 14 15

1,344,000

Schedule D (Form 1065) 2022

C:9-58 Form

8949

Department of the Treasury Internal Revenue Service Name(s) shown on return

Sales and Other Dispositions of Capital Assets

OMB No. 1545-0074

20 22

Go to www.irs.gov/Form8949 for instructions and the latest information.

Attachment File with your Schedule D to list your transactions for lines 1b, 2, 3, 8b, 9, and 10 of Schedule D.Sequence No. 12A

Healthwise Medical Supplies Company

Social security number or taxpayer identification number

XX-2024022

Before you check Box A, B, or C below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check.

Part I

Short-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see instructions). For long-term transactions, see page 2.

Note: You may aggregate all short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 1a; you aren’t required to report these transactions on Form 8949 (see instructions).

You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.

(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (B) Short-term transactions reported on Form(s) 1099-B showing basis wasn’t reported to the IRS (C) Short-term transactions not reported to you on Form 1099-B 1 (a) Description of property (Example: 100 sh. XYZ Co.)

(b) Date acquired (Mo., day, yr.)

(c) Date sold or disposed of (Mo., day, yr.)

Adjustment, if any, to gain or loss. If you enter an amount in (e) (h) Cost or other basis. column (g), (d) Gain or (loss).

See the separate instructions.

See the Note below Subtract column (e) Proceeds enter a code in column (f). and see Column (e) (sales price) from column (d) and (f) in the separate (g) combine the result (see instructions) Code(s) from instructions with column (g) Amount of instructions adjustment

2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 1b (if Box A above is checked), line 2 (if Box B above is checked), or line 3 (if Box C above is checked)

Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g)in the separate instructions for how to figure the amount of the adjustment.

For Paperwork Reduction Act Notice, see your tax return instructions.

C:TRP-63 ..

Cat. No. 37768Z

Form 8949 (2022)

C:9-58 Attachment Sequence No. 12A

Form 8949 (2022)

Page 2

Name(s) shown on return. Name and SSN or taxpayer identification no. not required if shown on other sideSocial security number or taxpayer identification number

XX-2024022

Healthwise Medical Supplies Company

Before you check Box D, E, or F below, see whether you received any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check.

Part II

Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term (see instructions). For short-term transactions, see page 1.

Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren’t required to report these transactions on Form 8949 (see instructions).

You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need.

(D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) (E) Long-term transactions reported on Form(s) 1099-B showing basis wasn’t reported to the IRS (F) Long-term transactions not reported to you on Form 1099-B 1 (a) Description of property (Example: 100 sh. XYZ Co.)

(b) Date acquired (Mo., day, yr.)

(c) Date sold or disposed of (Mo., day, yr.)

Adjustment, if any, to gain or loss. If you enter an amount in (e) (h) Cost or other basis. column (g), Gain or (loss). (d) Seeathe separate instructions.

See the Note below enter Subtract column (e) Proceeds code in column (f). and see Column (e) from column (d) and (sales price) (f) in the separate combine the result (see instructions) (g) Code(s) from instructions with column (g) Amount of instructions adjustment

1,000 sh. Fastgrowth, Inc.01/02/1907/06/221,440,000

96,000

1,344,000

96,000

1,344,000

2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 8b (if Box D above is checked), line 9 (if Box E

above is checked), or line 10 (if Box F above is checked) ..

1,440,000

Note: If you checked Box D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment.

Form 8949 (2022)

C:TRP-64 ..

C:9-58 Form

1125-A

Cost of Goods Sold OMB No. 1545-0123

(Rev. November 2018) Department of the Treasury Internal Revenue Service Name

Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065.

Go to www.irs.gov/Form1125A for the latest information.

Employer identification number

Healthwise Medical Supplies Company

1 2 3 4 5 6 7

Inventory at beginning of year

. . . . . . .

Purchases . . . . . . . . . . . .

Cost of labor . . . . . . . . . .

Additional section 263A costs (attach schedule) . .

Other costs (attach schedule) . . . . . .

Total. Add lines 1 through 5 . . . . . . . . . . . . .

Inventory at end of year .

8

Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return. See instructions . . . . . . . . . . . . . . .

Check all methods used for valuing closing inventory:

9a

b c d

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

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4,200,000 1,680,000 2,520,000

8

(i) Cost (ii) Lower of cost or market (iii) Other (Specify method used and attach explanation.)

Check if there was a writedown of subnormal goods . . . . . . . . . . . . . . . .

Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO .

XX-2024022 1,400,000 2,800,000

1 2 3 4 5 6 7

. .

. .

. .

.

. .

. .

. .

9d

e

If property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions

.

Yes

No

f

Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

No

Section references are to the Internal Revenue Code unless otherwise noted.

What’s New Small business taxpayers. For tax years beginning after December 31, 2017, the following apply.

• A small business taxpayer (defined below), may use a method of accounting for inventories that either: (1) treats inventories as nonincidental materials and supplies, or (2) conforms to the taxpayer’s financial accounting treatment of inventories.

• A small business taxpayer is not required to capitalize costs under section 263A.

General Instructions Purpose of Form Use Form 1125-A to calculate and deduct cost of goods sold for certain entities.

Who Must File Filers of Form 1120, 1120-C, 1120-F, 1120S, or 1065, must complete and attach Form 1125-A if the applicable entity reports a deduction for cost of goods sold.

Inventories

merchandise is an income-producing factor. See Regulations section 1.471-1. If inventories are required, you generally must use an accrual method of accounting for sales and purchases of inventory items.

Exception for certain taxpayers. A small business taxpayer (defined below) can adopt or change its accounting method to account for inventories in the same manner as material and supplies that are nonincidental, or conform to its treatment of inventories in an applicable financial statement (as defined in section 451(b)(3)), or if it does not have an applicable financial statement, the method of accounting used in its books and records prepared in accordance with its accounting procedures. See section 471(c)(3).

A small business taxpayer claiming exemption from the requirement to keep inventories is changing its method of accounting for purposes of section 481.

For additional guidance on this method of accounting, see Pub. 538, Accounting Periods and Methods. For guidance on changing to this method of accounting, see Form 3115 and the Instructions for Form 3115.

Generally, inventories are required at the beginning and end of each tax year if the production, purchase, or sale of

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 55988R

C:TRP-65 ..

Small business taxpayer. A small business taxpayer is a taxpayer that (a) has average annual gross receipts of $25 million or less (indexed for inflation) for the 3 prior tax years, and (b) is not a tax shelter (as defined in section 448(d)(3)). See Pub. 538.

Uniform capitalization rules. The uniform capitalization rules of section 263A generally require you to capitalize, or include in inventory, certain costs incurred in connection with the following.

• The production of real property and tangible personal property held in inventory or held for sale in the ordinary course of business.

• Real property or personal property (tangible and intangible) acquired for resale.

• The production of real property and tangible personal property for use in its trade or business or in an activity engaged in for profit.

A small business taxpayer (defined above) is not required to capitalize costs under section 263A. See section 263A(i).

See the discussion on section 263A uniform capitalization rules in the instructions for your tax return before completing Form 1125-A. Also see Regulations sections 1.263A-1 through 1.263A-3. See Regulations section 1.263A-4 for rules for property produced in a farming business.

Form 1125-A (Rev. 11-2018)

C:9-58 Form

Depreciation and Amortization

4562

Name(s) shown on return

Healthwise Medical Supplies Company

1 2 3 4 5

20 22

Attach to your tax return.

Go to www.irs.gov/Form4562 for instructions and the latest information.

Department of the Treasury Internal Revenue Service

Part I

OMB No. 1545-0172

(Including Information on Listed Property)

Attachment Sequence No. 179 Identifying number

Business or activity to which this form relates

Medical Equipment Manufacturing

XX-2024022

Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.

.

Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . .

Total cost of section 179 property placed in service (see instructions) . . . . . . .

Threshold cost of section 179 property before reduction in limitation (see instructions) . . .

. . . .

. . . .

Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . .

Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions . . . . . . . . . . . . . . . . . . . . . . .

6

(a) Description of property

(b) Cost (business use only)

. . . .

.

.

1 2 3 4 5

700,000a 700,000 2,700,000 -0700,000

(c) Elected cost

700,000

Equipment

. . . .

700,000

. . . . . . . .

7 7 Listed property. Enter the amount from line 29 . . . . . . .

8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 8 . . . . . . . . . . . . . . .

9 Tentative deduction. Enter the smaller of line 5 or line 8 .

9 . . . . . . . . . .

10 Carryover of disallowed deduction from line 13 of your 2021 Form 4562.

10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 11 . . . . .

12 Section 179 expense deduction. Add lines 9 and 10, but don’t enter more than line 11 .

12 . . 13 13 Carryover of disallowed deduction to 2023. Add lines 9 and 10, less line 12 Note: Don’t use Part II or Part III below for listed property. Instead, use Part V.

Part II

700,000 700,000

Special Depreciation Allowance and Other Depreciation (Don’t include listed property. See instructions.)

14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions. . . . . . . . . . . . . . . . . . . . .

.

.

15 Property subject to section 168(f)(1) election . . depreciation (including ACRS) . .

16 Other

. .

. .

Part III

700,000 700,000

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

. .

14 15 16

MACRS Depreciation (Don’t include listed property. See instructions.)

Section A . . . . . .

17 MACRS deductions for assets placed in service in tax years beginning before 2022 .

17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . . . . .

Section B—Assets Placed in Service During 2022 Tax Year Using the General Depreciation System (a) C l assification of property

(b) Month and year (c) Basis for depreciation (business/investment use (d) Recovery placed in period service only—see instructions)

19a 3-year property b 5-year property c 7-year property d 10-year property e 15-year property f 20-year property g 25-year property h Residential rental

(e) Convention

(f) Method

MM MM MM MM

S/L S/L S/L S/L S/L

MM MM

S/L S/L S/L S/L

25 yrs.

27.5 yrs.

27.5 yrs.

39 yrs.

391,840

(g) Depreciation deduction

property i Nonresidential real property Section C— Assets Place d in Service During 2 022 Tax Yea r Using the Alt e rnative Depreciatio n System 20a Class life b 12-year c 30-year d 40-year

Part IV

12 yrs.

30 yrs.

40 yrs.

Summary (See instructions.)

. . . . . . . . . . . . . . . . . . . .

21 Listed property. Enter amount from line 28 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21.Enter . here and on the appropriate lines of your return. Partnerships and S corporations—see instructions 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs . . . . . . . . .

23 For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 12906N

21 22

391,840b Form

4562 (2022)

aPer the worksheet in the instructions for Form 4562, Line 1 should be the lesser of the maximum Sec. 179 d eduction ($1,080,000 in 2022) or the total cost of Sec. 179 property. bForm 4562 instructions say to omit Sec. 179 deduction from this line for partnerships.

C:TRP-66 ..

C:9-58 651121 Final K-1

Schedule K-1 (Form 1065)

Part III Partner’s Share of Current Year Income, Deductions, Credits, and Other Items

20 22

Department of the Treasury Internal Revenue Service /

2022

/

/

ending

/

Partner’s Share of Income, Deductions, Credits, etc.

See separate instructions.

Part I

A C

Self-employment earnings (loss)

15

Credits

Guaranteed payments for capital

16

Schedule K-3 is attached if checked . . . . .

4c

Total guaranteed payments

17

Alternative minimum tax (AMT) items

5

Interest income

6a

Ordinary dividends

6b

Qualified dividends

18

Tax-exempt income and nondeductible expenses

6c

Dividend equivalents

7

Royalties

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

9c

Unrecaptured section 1250 gain

10

Net section 1231 gain (loss)

11

Other income (loss)

12

Section 179 deduction

13

Other deductions

Ordinary business income (loss)

2

Net rental real estate income (loss)

3

Other net rental income (loss)

4a

Guaranteed payments for services

4b

567,318

Information About the Partnership

200,000

Partnership’s employer identification number

A

XX-2024022

Partnership’s name, address, city, state, and ZIP code

B

Healthwise Medical Supplies Company 2400 Second Street City, ST 12345 Center City, ST

IRS center where partnership filed return:

C D

200,000

Check if this is a publicly traded partnership (PTP)

Part II E

F

G H1 H2

Information About the Partner

Partner’s SSN or TIN (Do not use TIN of a disregarded entity. See instructions.)

XXX-XX-XXXX

7,920 7,920

*767,318 *1,379,000

A

600

Name, address, city, state, and ZIP code for partner entered in E. See instructions.

Leisa H. Bailey 1200 First Pike City, ST 12345

x x

General partner or LLC member-manager

Limited partner or other LLC member

Domestic partner

Foreign partner

*288,000 9b Collectibles (28%) gain (loss)

If the partner is a disregarded entity (DE), enter the partner’s:

I1

TIN Name What type of entity is this partner?

I2

If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here

J

Partner’s share of profit, loss, and capital (see instructions): Beginning Ending

Individual

30 30 % 30 %

30 30 % 30 %

Profit Capital

Check if decrease is due to sale or exchange of partnership interest

. .

210,000

Partner’s share of liabilities: Beginning Nonrecourse

.

.

$

Qualified nonrecourse financing . . .

Recourse . . .

$ $

19

A

Distributions

20

Other information

600,000

*See schedule on next page

%

%

Loss

K

14

1 For calendar year 2022, or tax year

beginning

OMB No. 1545-0123

Amended K-1

Ending $

253,470

$ $

98,658

21

Foreign taxes paid or accrued

*See schedule on next page

Check this box if Item K includes liability amounts from lower tier partnerships

.

.

$$

Capital contributed during the year .

.

$$

Beginning capital account

.

. . $( $ Other increase (decrease) (attach explanation) Current year net income (loss) .

Withdrawals and distributions .

.

.

.

.

.

Ending capital account

M

x

*693,018 * (59,400) 600,000 ) 1,285,026

Did the partner contribute property with a built-in gain (loss)?

Yes

N

.

1,251,408

No

If “Yes,” attach statement. See instructions.

Partner’s Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning

.

.

.

.

.

.

.

.

$

Ending .

.

.

.

.

.

.

.

.

$

0 0

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

22

More than one activity for at-risk purposes*

23

More than one activity for passive activity purposes*

*See attached statement for additional information.

For IRS Use Only

Partner’s Capital Account Analysis

L

www.irs.gov/Form1065

C:TRP-67 ..

Cat. No. 11394R

Schedule K-1 (Form 1065) 2021

C:9-58 Healthwise Medical Supplies Company XX-2024022 2022 Form 1065 Schedule K-1 Bailey – Part II, L, Current year increase: This analysis is done using tax basis capital account numbers, which in Bailey’s case are the same as Sec. 704(b) book amounts. $693,018 ($59,400)

($2,694,060 net income (loss) – $384,000 precontribution gain) × 0.30 $2,000 tax-exempt interest – $200,000 guaranteed payments) × 0.30 Schedule K-1 Bailey – Part III, 9a, Net LTCG: ($1,440,000 selling price – $480,000 book value) × 0.30

$288,000

Schedule K-1 Bailey – Part III, 13, Other deductions: Cash contribution Investment interest expense Investment expense

A H L

$16,800 1,260 2,160

$567,318 ordinary income + $200,000 guaranteed payment

A

$767,318

[($4,130,000 gross profit – $200,000 guar. pmt.) × 0.30] + $200,000

C

$1,379,000

Schedule K-1 Bailey – Part III, 14, Self-employment earnings:

Schedule K-1 Bailey – Part III, 20, Other information: Investment income [dividends are inv. inc. only to the extent a partner elects to tax them at ordinary rates under Sec. 163(d)(4)(B).]

Investment expenses Sec. 199A QBI ($567,318 ord. inc. – $210,000 Sec. 179 exp.)

Sec. 199A W-2 wages ($980,000 × 0.30) Sec. 199A unadjusted basis of property ($2,300,000 × 0.30)

A B Z Z Z

$7,920 2,160 357,318 294,000 690,000

Bailey’s basis in partnership interest (outside basis): Outside basis at 1/1/22

$1,504,878

Plus: Partnership ordinary income Dividend income Net long-term capital gain Tax-exempt income Minus: Distributions Decrease in share of partnership liabilities Sec. 179 expense Cash contribution Investment interest expense Investment expense Outside basis at 12/31/22 C:TRP-68 ..

$567,318 7,920 288,000 600 $600,000 154,812 210,000 16,800 1,260 2,160

863,838

(985,032) $1,383,684

C:9-58 651121 Final K-1

Schedule K-1 (Form 1065)

Part III Partner’s Share of Current Year Income, Deductions, Credits, and Other Items

20 22

Department of the Treasury Internal Revenue Service /

2022

/

/

ending

/

Partner’s Share of Income, Deductions, Credits, etc.

See separate instructions.

Part I

Information About the Partnership

A

Partnership’s employer identification number

B

Partnership’s name, address, city, state, and ZIP code

XX-2024022

Healthwise Medical Supplies Company 2400 Second Street City, ST 12345 Center City, ST

IRS center where partnership filed return:

C D

A C

Self-employment earnings (loss)

15

Credits

Guaranteed payments for capital

16

Schedule K-3 is attached if checked . . . . .

4c

Total guaranteed payments

17

Alternative minimum tax (AMT) items

5

Interest income

6a

Ordinary dividends

6b

Qualified dividends

18

Tax-exempt income and nondeductible expenses

6c

Dividend equivalents

A

7

Royalties

8

Net short-term capital gain (loss)

9a

Net long-term capital gain (loss)

9c

Unrecaptured section 1250 gain

10

Net section 1231 gain (loss)

11

Other income (loss)

12

Section 179 deduction

Ordinary business income (loss)

2

Net rental real estate income (loss)

3

Other net rental income (loss)

4a

Guaranteed payments for services

4b

1,323,742

18,480

Check if this is a publicly traded partnership (PTP)

Part II E

F

G H1 H2

Information About the Partner

18,480

Partner’s SSN or TIN (Do not use TIN of a disregarded entity. See instructions.)

XXX-XX-XXXX

1,323,742 *2,751,000

1,400

Name, address, city, state, and ZIP code for partner entered in E. See instructions.

Thomas J. Firth 3600 Third Blvd.

City, ST 12345

x x

General partner or LLC member-manager

Limited partner or other LLC member

Domestic partner

Foreign partner

*1,056,000 9b Collectibles (28%) gain (loss)

If the partner is a disregarded entity (DE), enter the partner’s:

I1

TIN Name What type of entity is this partner?

I2

If this partner is a retirement plan (IRA/SEP/Keogh/etc.), check here

J

Partner’s share of profit, loss, and capital (see instructions): Beginning Ending

Individual

70 70 % 70 %

Profit Capital

70 70 % 70 %

Check if decrease is due to sale or exchange of partnership interest

. .

490,000

Partner’s share of liabilities: Beginning Nonrecourse

.

.

$

Qualified nonrecourse financing . . .

Recourse . . .

$ $

19

A

Distributions

20

Other information

1,400,000

*See schedule on next page

%

%

Loss

K

14

1 For calendar year 2022, or tax year

beginning

OMB No. 1545-0123

Amended K-1

Ending

13

$

591,430

$ $

21

Foreign taxes paid or accrued

Other deductions

*See schedule on next page

230,202

Check this box if Item K includes liability amounts from lower tier partnerships Partner’s Capital Account Analysis .

.

$$

Capital contributed during the year .

.

$$

Beginning capital account

.

. . $( $ Other increase (decrease) (attach explanation) Current year net income (loss) .

Withdrawals and distributions .

.

.

.

.

.

Ending capital account

M

x

*2,001,042 *(138,600) 1,400,000 2,998,394

Did the partner contribute property with a built-in gain (loss)?

Yes

N

.

*2,535,952

No

If “Yes,” attach statement. See instructions.

Partner’s Share of Net Unrecognized Section 704(c) Gain or (Loss) Beginning

.

.

.

.

.

.

.

.

$

Ending .

.

.

.

.

.

.

.

.

$

384,000 0

For Paperwork Reduction Act Notice, see the Instructions for Form 1065.

22

More than one activity for at-risk purposes*

23

More than one activity for passive activity purposes*

*See attached statement for additional information.

)

For IRS Use Only

L

www.irs.gov/Form1065

C:TRP-69 ..

Cat. No. 11394R

Schedule K-1 (Form 1065) 2021

C:9-58 Healthwise Medical Supplies Company XX-2024022 2022 Form 1065 Schedule K-1 Firth – Part II, L, Current year increase: This analysis is done using tax basis capital account numbers. $2,919,952 Firth’s beginning capital account balance per Sec. 704(b) book $2,535,952 amount – $384,000 precontribution gain (($2,694,060 net income (loss) – $384,000 precontribution gain) × 0.70) + $384,000 precontribution margin + (($2,000 tax-exempt interest – $200,000 guaranteed $1,862,442 payments) × 0.70) Check: Net tax based income ($2,399,622 – $537,180 from outside basis schedule below) $1,862,442 Schedule K-1 Firth – Part III, 9a, Net LTCG: ($1,440,000 selling price – $480,000 book value) × 0.70 $1,056,000 + $384,000 precontribution gain Schedule K-1 Firth – Part III, 13, Other deductions: Cash contribution A $39,200 Investment interest expense H 2,940 Investment expense L 5,040 Schedule K-1 Firth – Part III, 14, Self-employment earnings: Ordinary income from Line 1 [($4,130,000 gross profit – $200,000 guar. pmt.) × 0.70]

A C

$1,323,742 $2,751,000

Schedule K-1 Firth – Part III, 20, Other information: Investment income [dividends are inv. inc. only to the extent partner elects to tax them at ordinary rates under Sec. 163(d)(4)(B).]

Investment expenses Sec. 199A QBI ($1,323,742 ord. inc. – $490,000 Sec. 179 exp.)

Sec. 199A W-2 wages ($980,000 × 0.70) Sec. 199A unadjusted basis of property ($2,300,000 × 0.70)

A B Z Z Z

$18,480 5,040 833,192 686,000 1,610,000

Firth’s basis in partnership interest (outside basis): Outside basis at 1/1/22 Plus: Partnership ordinary income Dividend income Net long-term capital gain Tax-exempt income Minus: Distributions

$3,127,382 $1,323,742 18,480 1,056,000 1,400 $1,400,000 361,228 490,000* 39,200* 2,940* 5,040*

Decrease in share of partnership liabilities Sec. 179 expense Cash contribution Investment interest expense Investment expense Outside basis at 12/31/22 Minus: Share of liabilities at 12/31/22 Tax basis capital account at 12/31/22 *Total expenses = $537,180 C:TRP-70 ..

2,399,622

(2,298,408) $3,228,596 (230,202) $2,998,394

C:9-59 Page 4

Form 1065 (2022)

Other Information

Alternative (AMT) Items Minimum Tax

International

Credits

SelfEmploy- Deductions ment

Income (Loss)

Schedule K

Partners’ Distributive Share Items

Total amount

See schedule on next page

. . .

Ordinary business income (loss) (page 1, line 22) 1 2 .Net . Expenses rental real from estateother income rental (loss) activities (attach(attach Form 8825) statement). . . . . . . . . . . . .

3a Other gross net rental income (loss). rental income (loss)Subtract . . .line. 3b. from . .line. 3a . . . . .

3a . . . .

3b b . . . . . . . . . . . c Guaranteed payments:a Services 4a b Capital 4b 4 c Total. Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest income . . . . . . . . . . . . . .

5 Dividends and dividend equivalents:a Ordinary dividends . . . . . . . . . . . .

6 b Qualified dividends c Dividend equivalents 6c 6b Royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 Net short-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . .

8 9a Net long-term capital gain (loss) (attach Schedule D (Form 1065)) . . . . . . . . . . . b .Collectibles (28%) gain (loss) . . . . . . . . . . . .

9b . . section 1250 gain (attach statement) . . . . c Unrecaptured 9c .Net section 1231 gain (loss) (attach Form 4797) . . . . . . . . . . . . . . .

10 Other income (loss) (see instructions) Type: 11 12 Section 179 deduction (attach Form 4562) . . . . . . . . . . . . . . . . .

13a Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Investment interest expense .

(2) Amount: c Section 59(e)(2) expenditures: (1) Type: d Other deductions (see instructions) Type: 14a Net earnings (loss) from self-employment . . . . . . . . . . . . . . . . . . b . Gross farming or fishing income . . . . . . . . . . . . . . . . . . . . . c Gross . . . . . . . . . . . . . . . . . nonfarm income . . . . . .

15a Low-income housing credit (section 42(j)(5)) . . . . . . . . . . . . . . . . . . . b Low-income housing credit (other) . c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) . . d Other rental real estate credits (see instructions) Type: e Other rental credits (see instructions) Type: f Other credits (see instructions) Type:

30,000

15,000

16

1 2

172,000

3c 4c 5 6a 7 8 9a

10 11 12 13a 13b 13c(2)

13d 14a 14b 14c 15a 15b 15c 15d 15e 15f

30,000 15,000 (9,000) 2,000 18,000 5,000 9,200 169,000a 240,000

Attach Schedule K-2 (Form 1065), Partners’ Distributive Share Items—International, and check this box to indicate that you are reporting items of international tax relevance . . . . .

Post-1986 depreciation adjustment . . . . . .

17a b c Adjusted gain or loss . . . . . . . . . . d e Depletion (other than oil and gas) . . . . . . f Oil, gas, and geothermal properties—gross income 18a Oil, gas, and geothermal properties—deductions . . Other AMT items (attach statement) . . . . . . Tax-exempt interest income . . . . . . . b . Other tax-exempt income . . . . . . . . . c Nondeductible . . . . . . . . expenses 19a . Distributions of cash and marketable securities . . of other property . . . . . . b Distributions 20a .Investment income . . . . . . . . . . . expenses . . . . . . . . . b Investment c Other items and amounts (attach statement) Total foreign taxes paid or accrued . . . . . .

21

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

17a 17b 17c 17d 17e 17f 18a 18b 18c 19a 19b 20a 20b

.

.

.

.

.

.

.

.

.

.

.

.

.

.

21

4,000 2,800 80,000 15,000b

Form 1065 (2022)

a$172,000 partnership ordinary income – $33,000 Sec. 1245 gain + $30,000 guaranteed payment. bInvestment income if partners elect to tax dividends at ordinary rates under Sec. 163(d)(4)(B).

C:TRP-71 ..

C:9-59 MP Partnership 2022 Form 1065 Partnership ordinary income Schedule K, Line 1: Sales Minus: Cost of goods sold Gross profit Plus: Sec. 1245 gain Minus: Ordinary expenses: Depreciation Guaranteed payment Business interest Business meals (100%) Partnership ordinary income

$450,000 (210,000) $240,000 33,000 $27,000 30,000 42,000 2,000

C:TRP-72 ..

(101,000) $172,000

C:11-61 Form

1120-S

U.S. Income Tax Return for an S Corporation

OMB No. 1545-0123

Do not file this form unless the corporation has filed or is attaching Form 2553 to elect to be an S corporation.

Go to www.irs.gov/Form1120S for instructions and the latest information.

20 22

Department of the Treasury Internal Revenue Service

For calendar year 2022 or tax year beginning A S election effective date

01/24/2013

B Business activity code number (see instructions)

327210

TYPE OR PRINT

C Check if Sch. M-3 attached

, 2022, ending

, 20

Name

D Employer identification number

Number, street, and room or suite no. If a P.O. box, see instructions.

E Date incorporated

City or town, state or province, country, and ZIP or foreign postal code

F Total assets (see instructions)

XX-XXXXXXX

Bottle-Up, Inc.

1/08/2013

1234 Hill Street City, ST 33333

750,028

✓No $

G Is the corporation electing to be an S corporation beginning with this tax year? See instructions.

Yes Name change (3) H Check if: (1) Final return (2) Address change (4) Amended return (5) S election termination I Enter the number of shareholders who were shareholders during any part of the tax year . . . . . . . . .

(2) J Check if corporation: (1) Aggregated activities for section 465 at-risk purposes Grouped activities for section 469 passive activity purposes

2

Caution: Include only trade or business income and expenses on lines 1a through 21. See the instructions for more information.

1a b

Tax and Payments

Deductions (see instructions for limitations)

Income

c 2 3 4 5 6 7 8 9 10 11

12 13 14 15 16 17 18 19 20 21

2,500,000 15,000

Gross receipts or sales . . . . . . . . . . . . . . . .

1a Returns and allowances . . . . . . . . . . . . . . . .

1b Balance. Subtract line 1b from line 1a . . . . . . . . . . . .

Cost of goods sold (attach Form 1125-A) . . . . . . . . . . . . . . . . . . .

Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . .

Net gain (loss) from Form 4797, line 17 (attach Form 4797) . . . . . . . . . . . . .

Other income (loss) (see instructions—attach statement) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compensation of officers (see instructions—attach 1125-E) . . . . . . . . . . .

Total income (loss).

Add lines 3 through 5 . . . Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Salaries and wages (less employment credits) . . . . . . . . . . . . . . . . . . . . . . . . . . . Repairs and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rents . . . . . . . .

Interest (see instructions) .

Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) Taxes and licenses .

. Depletion (Do not deduct oil and gas depletion.) . . . . .. . .Advertising . . . . . . . . . . . . . . . . .. . . . . . . .. .

Pension, profit-sharing, etc., plans . . . . . . . . . .. .

Employee benefit programs . . . . . . . .Other deductions (attach statement) . . . . .. . . . . . . . . . . .. .

Total deductions. Add lines 7 through 19 . . .

Ordinary business income (loss). Subtract line 20 from line 6. . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. Excess net passive income or LIFO recapture tax (see instructions) . .

22a 22a . . .

22b b Tax . from Schedule D (Form 1120-S) . . . . . . . . . . . . . . . . . . . . c Add lines 22a and 22b (see instructions for additional taxes) . .

23a 2022 estimated tax payments and 2021 overpayment credited to 2022 23a .

23b b Tax deposited with Form 7004 . . . . . . . . . . . . . .

23c Credit for federal tax paid on fuels (attach Form 4136) . . . . . . c . . . . . . . d Add lines 23a through 23c . . . . . . . . . . . . . . . .

Estimated tax penalty (see instructions). Check if Form 2220 is attached . . . . . . . .

24 Amount owed. If line 23d is smaller than the total of lines 22c and 24, enter amount owed . . .

25 Overpayment. If line 23d is larger than the total of lines 22c and 24, enter amount overpaid . . .

26 27 Enter amount from line 26: Credited to 2023 estimated tax Refunded

Sign Here

1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

2,485,000 1,474,000 1,011,000 1,011,000 120,000 331,020 38,000 620 30,000 39,480 1,000 36,311 105,000 11,000 228,102 940,533 70,467

22c

23d 24 25 26 27

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Henman Hiebert Signature of officer Print/Type preparer’s name

Paid Preparer Firm’s name Use Only Firm’s address

3/12/23 Date Preparer’s signature

May the IRS discuss this return No Yes See instructions.

Title Date

PTIN Check if self-employed Firm’s EIN Phone no.

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 11510H

C:TRP-73 ..

Form 1120-S (2022)

C:11-61 Page 2

Form 1120-S (2022)

Schedule B

Other Information (see instructions)

1

Check accounting method:

2

See the instructions and enter the: a Business activity

3 4

a c

x Accrual

Yes No

Cash b Other (specify)

Manufacturing

b Product or service

Glass bottles

At any time during the tax year, was any shareholder of the corporation a disregarded entity, a trust, an estate, or a nominee or similar person? If “Yes,” attach Schedule B-1, Information on Certain Shareholders of an S Corporation. .

At the end of the tax year, did the corporation: a Own directly 20% or more, or own, directly or indirectly, 50% or more of the total stock issued and outstanding of any foreign or domestic corporation? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (i) Name of Corporation

(ii) Employer Identification Number (if any)

(iii) Country of Incorporation

(ii) Employer Identification Number (if any)

(iii) Type of Entity

(iv) Percentage of Stock Owned

(iv) Country of Organization

(v) Maximum Percentage Owned in Profit, Loss, or Capital

. . . . . .

5 a At the end of the tax year, did the corporation have any outstanding shares of restricted stock? .

If “Yes,” complete lines (i) and (ii) below. (i) Total shares of restricted stock . . . . . . . . . (ii) Total shares of non-restricted stock . . . . . . . . b At the end of the tax year, did the corporation have any outstanding stock options, warrants, or similar instruments?

7

Has this corporation filed, or is it required to file, Form 8918,Material Advisor Disclosure Statement, to provide information on any reportable transaction? . . . . . . . . . . . . . . . . . . . . .

Check this box if the corporation issued publicly offered debt instruments with original issue discount. . .

. .

. .

x

.

x

.

x

.

x

If “Yes,” complete lines (i) and (ii) below. (i) Total shares of stock outstanding at the end of the tax year . (ii) Total shares of stock outstanding if all instruments were executed 6

x

(v) If Percentage in (iv) Is 100%, Enter the Date (if applicable) a Qualified Subchapter S Subsidiary Election Was Made

b Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions. If “Yes,” complete (i) through (v) below ....... (i) Name of Entity

x

If checked, the corporation may have to file Form 8281,Information Return for Publicly Offered Original Issue Discount Instruments.

8

9

If the corporation (a) was a C corporation before it elected to be an S corporation or the corporation acquired an asset with a basis determined by reference to the basis of the asset (or the basis of any other property) in the hands of a C corporation, and (b) has net unrealized built-in gain in excess of the net recognized built-in gain from prior years, enter the net unrealized built-in $ gain reduced by net recognized built-in gain from prior years. See instructions . . . . . . .

Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions. . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . .

10 Does the corporation satisfy one or more of the following? See instructions a The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense. b The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $27 million and the corporation has business interest expense. c The corporation is a tax shelter and the corporation has business interest expense.

If “Yes,” complete and attach Form 8990, Limitation on Business Interest Expense Under Section 163(j).

.

. . . . . . . . .

Does the corporation satisfy both of the following conditions? a The corporation’s total receipts (see instructions) for the tax year were less than $250,000. b The corporation’s total assets at the end of the tax year were less than $250,000.

If “Yes,” the corporation is not required to complete Schedules L and M-1.

.

11

.

.

.

.

.

.

.

.

x x x

Form 1120-S (2022)

C:TRP-74 ..

C:11-61 Page 3

Form 1120-S (2022)

Schedule B 12

13 14a b 15

Other Information (see instructions) (continued)

Yes

During the tax year, did the corporation have any non-shareholder debt that was canceled, was forgiven, or had the terms modified so as to reduce the principal amount of the debt? . . . . . . . . . . . . . . . . . . . . . . . . . . .$ If “Yes,” enter the amount of principal reduction . . . . .

During the tax year, was a qualified subchapter S subsidiary election terminated or revoked? If “Yes,” see instructions . .

Did the corporation make any payments in 2022 that would require it to file Form(s) 1099? . . . . . . . . . .

If “Yes,” did or will the corporation file required Form(s) 1099?. . . . . . . .. . . . . . . . . . .

Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund? . . . . . . . . . . .

If “Yes,” enter the amount from Form 8996, line 15 . . . . . . . . . . . . . .$

Schedule K Shareholders’ Pro Rata Share Items

Total amount

. . . .

Ordinary business income (loss) (page 1, line 21) . . . . . . .

Net rental real estate income (loss) (attach Form 8825) . . . . . .

Other gross rental income (loss) . . . . . . . . . . . b Expenses from other rental activities (attach statement) c Other net rental income (loss). Subtract line 3b from line 3a . . . . . . .

Interest . . income . . .. . . . . . . .

4 . . . .

Dividends: a Ordinary dividends . . . . . . . .

5 . . . . b Qualified dividends . . . . . . . . . . . . . . . . . . . .

Royalties . . . . . . .

6 Net short-term capital gain (loss) (attach Schedule D (Form 1120-S)) 7 8a Net long-term capital gain (loss) (attach Schedule D (Form 1120-S)) . . b Collectibles (28%) gain (loss) . . . . . . . . . . . . . c Unrecaptured section 1250 gain (attach statement) . . . . . .

Net section 1231 gain (loss) (attach Form 4797) . . . . . .

9 Other income (loss) (see instructions) . . . Type: 10 Section 179 deduction (attach Form 4562) . . . . . . . . .

11 . . . . . . . .

12a .Charitable contributions . . . . . . . . . . . . . . . b Investment interest expense . . Type: . . .

Section 59(e)(2) expenditures . c . . Type: deductions (see instructions) . . d Other 13a Low-income housing credit (section 42(j)(5)) . . . . . . . . b Low-income housing credit (other) . . . . . . . . . . .

. .

. .

. .

. .

. .

1 2

. . . . . . . . .

5b

. . .

. . .

. . .

. . .

. . .

3c 4 5a

. . . . . . . . .

8b 8c

. . .

. . .

. . .

. . .

. . .

6 7 8a

.

.

.

.

.

.

.

.

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

9 10 11 12a 12b 12c 12d 13a 13b 13c 13d 13e 13f 13g

11,600

. . . . . .. c Qualified rehabilitation expenditures (rental real estate) (attach Form 3468, if applicable) .

d e f g

Other rental real estate credits (see instructions) Type: Other rental credits (see instructions) . . . Type: Biofuel producer credit (attach Form 6478) . . . .

Other credits (see instructions) . . . . . Type:

.

.

.

.

.

.

.

.

.

.

.

14

Attach Schedule K-2 (Form 1120-S), Shareholders’ Pro Rata Share Items—International, and check this box to indicate you are reporting items of international tax relevance . . ..

15a b c d e f 16a b c d e f

Post-1986 depreciation adjustment ........ Adjusted gain or . loss ............ Depletion (other than oil and gas) ........ Oil, gas, . and geothermal properties—gross income ... Oil, gas, and . geothermal properties—deductions .... . . .

Other AMT items (attach statement) ........ .

Tax-exempt interest income ..........

Other tax-exempt income ........... Nondeductible expenses . ........... Distributions (attach statement if required) (see . instructions) Repayment of loans from shareholders ....... . .

Foreign taxes paid or accrued ......... .

Alternative (AMT) ItemsTax Minimum

International Items Affecting Shareholder Basis

. . . . . .

3a 3b

Investment expenses . . . . . .. .

Credits

Deductions

Income (Loss)

1 2 3a

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

*$3,000 insurance premium + $1,000 penalties + $8,500 entertainment.

C:TRP-75 ..

. . . . . . . . . . . .

. . . . . . . . . . . .

. .

.

. . . . . . . . . . . .

15a 15b 15c 15d 15e 15f 16a 16b 16c 16d 16e 16f

No

x x x x

70,467

1,200 11,600 48,666 (1,100) 9,000 500 600

9,000

600 *12,500 70,000 Form 1120-S (2022)

C:11-61 Page 4

Form 1120-S (2022)

Recon- Other ciliation Information

Schedule K

Shareholders’ Pro Rata Share Items (continued)

Total amount

17a b c d

Investment income . . . . . . . . . . . . . . .

Investment expenses . . . . . . . . . . . . . .

Dividend distributions paid from accumulated earnings and profits .

Other items and amounts (attach statement)

18

Income (loss) reconciliation. Combine the amounts on lines 1 through 10 in the far right column. From the result, subtract the sum of the amounts on lines 11 through 12d and 16f

Schedule L

Balance Sheets per Books

. .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

.

Beginning of tax year

1 2a b 3 4 5 6 7 8 9 10a b 11a b 12 13a b 14 15

Assets Cash . . . . . . . . . . .

Trade notes and accounts receivable .

Less allowance for bad debts . . . .

Inventories . . . . . . . . .

U.S. government obligations . . . .

Tax-exempt securities (see instructions) Other current assets (attach statement) .

Loans to shareholders . . . . . .

Mortgage and real estate loans . . . .

Other investments (attach statement) Buildings and other depreciable assets .

Less accumulated depreciation . . .

Depletable assets . . Less . . . . . accumulated depletion . Land . . . . . . (net of any amortization) .

Intangible assets (amortizable only) . .

Less accumulated amortization . . .

Other assets (attach statement) . . .

Total assets . . . . . . . . .

16 17 18 19 20 21 22 23 24 25 26 27

Liabilities and Shareholders’ Equity Accounts payable . . . . . . . . .

Mortgages, notes, bonds payable in less than 1 year Other current liabilities (attach statement) . . . .

Loans from shareholders . . . . .

Mortgages, notes, bonds payable in 1 year or more Other liabilities (attach statement) . . . .

Capital stock . . . . . . . . . . .

Additional paid-in capital . . . . . . .

Retained earnings . . . . . . . . .

Adjustments to shareholders’ equity (attach statement) Less cost of treasury stock . . . . . .

Total liabilities and shareholders’ equity . .

(a)

. . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . .

(

(

41,500

375,434 161,318

41,500 102,000 15,000 10,000

(

103,000 214,116

(

)

(

)

(

160,000

(

45,180

375,000 173,100

116,948 45,180 96,000 16,000 10,000

)

74,000 201,900

)

(

)

(

)

190,000

660,616

750,028

36,000 44,000 20,616 10,000 210,000 10,000

10,000 52,000 19,666 5,000 260,000 10,000

330,000

393,362

660,616

)

(

750,028

)

Form 1120-S (2022)

*$1,200 interest + $11,600 dividends if shareholders elect to tax dividends at ordinary rates under Sec. 163(d)(4)(B)

C:TRP-76 ..

120,733 (d)

(c)

15,000

)

18 End of tax year

(b)

)

*12,800 600

17a 17b 17c

C:11-61 Page 5

Form 1120-S (2022)

Schedule M-1

Reconciliation of Income (Loss) per Books With Income (Loss) per Return Note: The corporation may be required to file Schedule M-3. See instructions.

1

Net income (loss) per books .

2

Income included on Schedule K, lines 1, 2, 3c, 4, 5a, 6, 7, 8a, 9, and 10, not recorded on books this year (itemize)

.

.

.

133,362

4

24,529

8,500

Travel and entertainment $

Penalties 1,000 / Key person life 3,00012,500 Add lines 1 through 3

Schedule M-2

.

.

.

.

.

.

145,862

7 Add lines 5 and 6 . . . . . .

8 Income (loss) (Schedule K, line 18).

Subtract line 7 from line 4 . . .

24,529 25,129 120,733

. .

Analysis of Accumulated Adjustments Account, Shareholders’ Undistributed Taxable Income Previously Taxed, Accumulated Earnings and Profits, and Other Adjustments Account (see instructions) (a) Accumulated adjustments account

1 2 3 4 5 6 7 8

600

6 Deductions included on Schedule K, lines 1 through 12 and 16f, not charged against book income this year (itemize): a Depreciation $

a b

600

a Tax-exempt interest $

Expenses recorded on books this year not included on Schedule K, lines 1 through 12 and 16f (itemize): Depreciation $

3

5 Income recorded on books this year not included on Schedule K, lines 1 through 10 (itemize):

Balance at beginning of tax year .... .

Ordinary income from page 1, line 21 .. .

Other additions ......... .

Loss from page 1, line 21 ...... . ( Other reductions ......... . ( Combine lines 1 through 5 ...... .

Distributions . . . . . . . . . . .

Balance at end of tax year. Subtract line 7 from line 6 ............ .

274,300 70,467 61,466* 23,700* 382,533 70,000 312,533

(b) Shareholders’ undistributed taxable income previously taxed

(c) Accumulated earnings and profits

(d) Other adjustments account

-0) )

600 (

600

)

600 Form 1120-S (2022)

*See schedules on next pages.

C:TRP-77 ..

C:11-61 Bottle-Up, Inc. XX-XXXXXXX 2022 Form 1120-S Page 1, Line 12 - Taxes and licenses: Payroll taxes Other taxes Total

$36,980 2,500 $39,480

Page 1, Line 19 - Other deductions: Utilities expense $ 54,000 Automobile and truck expense 26,000 Office supplies expense 9,602 Meals and entertainment expense (deductible portion) 4,000 Selling expenses 108,500 Accounting and legal expense 4,500 Insurance expense 21,500 Total $228,102 Page 3, Schedule K, Line 16c - Nondeductible expenses: Keyperson life insurance premium Penalties Travel and entertainment expenses Total

$ 3,000 1,000 8,500 $12,500

Form 1125-A, Line 5 - Other costs: Supplies Utilities Other manufacturing costs Total

$ 80,000 100,000 188,000 $368,000

C:TRP-78 ..

C:11-61 Bottle-Up, Inc. XX-XXXXXXX 2022 Form 1120-S Beginning of Page 4, Schedule L, Line 18 - Other current liabilities: Tax Year Accrued salaries payable Payroll taxes payable Sales taxes payable Total

$12,000 3,416 5,200 $20,616

End of Tax Year $ 6,000 7,106 6,560 $19,666

Page 4, Schedule L, Line 24 - Retained earnings reconciliation: Retained earnings, beginning of tax year

$330,000

Net income per books Distributions, other than dividends Retained earnings, end of tax year

133,362 (70,000) $393,362

Page 5, Schedule M-2, Line 3 - Other additions: Interest income Dividend income LTCG Total

$ 1,200 11,600 48,666 $61,466

Page 5, Schedule M-2, Line 5 - Other reductions: Sec. 1231 loss Charitable contributions Investment expenses Investment interest Nondeductible expenses (See Sch. M-1, Line 3b) Total

C:TRP-79 ..

$ 1,100 9,000 500 600 12,500 $23,700

C:11-61 SCHEDULE D (Form 1120-S) Department of the Treasury Internal Revenue Service Name

Capital Gains and Losses and Built-in Gains

OMB No. 1545-0123

Attach to Form 1120-S. Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.

Go to www.irs.gov/Form1120S for instructions and the latest information.

20 22 Employer identification number

Bottle-Up, Inc.

XX-XXXXXXX

. . .

If “Yes,” attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss.

Part I

(d) Proceeds (sales price)

(e) Cost (or other basis)

(g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, column (g)

This form may be easier to complete if you round off the cents to whole dollars.

1a

Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . . . . . . . . . .

1b

Totals for all transactions reported on Form(s) 8949 with Box A checked . .

Totals for all transactions reported on Form(s) 8949 with Box B checked. .

Totals for all transactions reported on Form(s) 8949 with Box C checked. .

Short-term capital gain from installment sales from Form 6252, line 26 or 37 . . . . . . . .

Short-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . . . . . . .. . . . . . .

Tax on short-term capital gain included on line 23 below . . . . . .

Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on Form 1120-S, Schedule K, line 7 or 10 . . . . . . . . . . . . . . . . . . .

3 4 5 6 7

Part II

(d) Proceeds (sales price)

(e) Cost (or other basis)

8a

Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . . . . . . . . . .

8b

Totals for all transactions reported on Form(s) 8949 with Box D checked. .

Totals for all transactions reported on Form(s) 8949 with Box E checked. .

Totals for all transactions reported on Form(s) 8949 with Box F checked. .

Long-term capital gain from installment sales from Form 6252, line 26 or 37 . .

Long-term capital gain or (loss) from like-kind exchanges from Form 8824 . . . ..

Capital gain distributions (see instructions) . . . . . . . . . . . ..

Tax on long-term capital gain included on line 23 below . . . . .

11 12 13 14 15

Yes

X No

4 5 6

(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)

(

)

7

(g) Adjustments to gain or loss from Form(s) 8949, Part II, line 2, column (g)

This form may be easier to complete if you round off the cents to whole dollars.

10

.

Long-Term Capital Gains and Losses—Generally Assets Held More Than One Year (see instructions)

to enter on the lines below.

9

.

Short-Term Capital Gains and Losses—Generally Assets Held One Year or Less (see instructions)

to enter on the lines below.

2

.

*

148,666

100,000

. . . .

. . . .

. . . .

. . . .

. . . .

. . . .

Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Enter here and on Form 1120-S, Schedule K, line 8a or 10 . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.

Note: Page 2 and Form 8949 not attached. *Capital assets; acquired 3/3/20; sold 9/15/22.

C:TRP-80 ..

Cat. No. 11516V

11 12 13 14 ( 15

(h) Gain or (loss) Subtract column (e) from column (d) and combine the result with column (g)

48,666 )

48,666

Schedule D (Form 1120-S) 2022

C:11-61 Form

1125-A

Cost of Goods Sold OMB No. 1545-0123

(Rev. November 2018) Department of the Treasury Internal Revenue Service Name

Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065.

Go to www.irs.gov/Form1125A for the latest information.

Employer identification number

XX-XXXXXXX 102,000 900,000 200,000

Bottle-Up, Inc.

1 2 3 4 5 6 7

Inventory at beginning of year

. . . . . . .

Purchases . . . . . . . . . . . .

Cost of labor . . . . . . . . . .

Additional section 263A costs (attach schedule) . .

Other costs (attach schedule) . . . . . .

Total. Add lines 1 through 5 . . . . . . . . . . . . .

Inventory at end of year .

8

Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return. See instructions . . . . . . . . . . . . . . .

Check all methods used for valuing closing inventory:

9a

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

1 2 3 4 5 6 7

368,000 1,570,000 96,000 1,474,000

8

(i) Cost (ii) Lower of cost or market (iii) Other (Specify method used and attach explanation.)

Check if there was a writedown of subnormal goods . . . . . . . . . . . . . . . .

Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed

FIFO

b c d

under LIFO .

.

.

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.

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.

.

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.

.

. .

. .

. .

.

. .

. .

. .

9d

e

If property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions

.

Yes

No

f

Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Yes

No

Section references are to the Internal Revenue Code unless otherwise noted.

What’s New Small business taxpayers. For tax years beginning after December 31, 2017, the following apply.

• A small business taxpayer (defined below), may use a method of accounting for inventories that either: (1) treats inventories as nonincidental materials and supplies, or (2) conforms to the taxpayer’s financial accounting treatment of inventories.

• A small business taxpayer is not required to capitalize costs under section 263A.

General Instructions Purpose of Form Use Form 1125-A to calculate and deduct cost of goods sold for certain entities.

Who Must File Filers of Form 1120, 1120-C, 1120-F, 1120S, or 1065, must complete and attach Form 1125-A if the applicable entity reports a deduction for cost of goods sold.

Inventories

merchandise is an income-producing factor. See Regulations section 1.471-1. If inventories are required, you generally must use an accrual method of accounting for sales and purchases of inventory items.

Exception for certain taxpayers. A small business taxpayer (defined below) can adopt or change its accounting method to account for inventories in the same manner as material and supplies that are nonincidental, or conform to its treatment of inventories in an applicable financial statement (as defined in section 451(b)(3)), or if it does not have an applicable financial statement, the method of accounting used in its books and records prepared in accordance with its accounting procedures. See section 471(c)(3).

A small business taxpayer claiming exemption from the requirement to keep inventories is changing its method of accounting for purposes of section 481.

For additional guidance on this method of accounting, see Pub. 538, Accounting Periods and Methods. For guidance on changing to this method of accounting, see Form 3115 and the Instructions for Form 3115.

Generally, inventories are required at the beginning and end of each tax year if the production, purchase, or sale of

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 55988R

C:TRP-81 ..

Small business taxpayer. A small business taxpayer is a taxpayer that (a) has average annual gross receipts of $25 million or less (indexed for inflation) for the 3 prior tax years, and (b) is not a tax shelter (as defined in section 448(d)(3)). See Pub. 538.

Uniform capitalization rules. The uniform capitalization rules of section 263A generally require you to capitalize, or include in inventory, certain costs incurred in connection with the following.

• The production of real property and tangible personal property held in inventory or held for sale in the ordinary course of business.

• Real property or personal property (tangible and intangible) acquired for resale.

• The production of real property and tangible personal property for use in its trade or business or in an activity engaged in for profit.

A small business taxpayer (defined above) is not required to capitalize costs under section 263A. See section 263A(i).

See the discussion on section 263A uniform capitalization rules in the instructions for your tax return before completing Form 1125-A. Also see Regulations sections 1.263A-1 through 1.263A-3. See Regulations section 1.263A-4 for rules for property produced in a farming business.

Form 1125-A (Rev. 11-2018)

C:11-61

4797

Form

Department of the Treasury Internal Revenue Service

Sales of Business Property

OMB No. 1545-0184

(Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2))

20 22

Attach to your tax return.

Go to www.irs.gov/Form4797 for instructions and the latest information.

Attachment Sequence No. 27

Name(s) shown on return

Identifying number

Bottle-Up, Inc.

XX-XXXXXXX

1a

Enter the gross proceeds from sales or exchanges reported to you for 2022 on Form(s) 1099-B or 1099-S (or substitute statement) that you are including on line 2, 10, or 20. See instructions . . . . . . . . . .

1a

b

Enter the total amount of gain that you are including on lines 2, 10, and 24 due to the partial dispositions of MACRS assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1b

c

Enter the total amount of loss that you are including on lines 2 and 10 due to the partial dispositions of MACRS assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1c

Part I 2

Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft—Most Property Held More Than 1 Year (see instructions) (a) Description of property

(b) Date acquired (mo., day, yr.)

(c) Date sold (mo., day, yr.)

(d) Gross sales price

1231 Property

6/5/21

12/21/22

8,900

(e) Depreciation allowed or allowable since acquisition

10,000

(1,100)

Gain, if any, from Form 4684, line 39 .Section . . 1231 . . gain . from . . installment . . . . . . . . .. sales from Form 6252, line 26 or 37. . . . . . . . .. . . . . . ..

Section 1231 gain or (loss) from like-kind exchanges from Form 8824. . . . . . .. .

Gain, if any, from line 32, from other than casualty or theft . . .

Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows .

. . . . .

3 4 5 6 7

8

Partnerships and S corporations. Report the gain or (loss) following the instructions for Form 1065, Schedule K, line 10, or Form 1120-S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below.

Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you didn’t have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule D filed with your return and skip lines 8, 9, 11, and 12 below.

Nonrecaptured net section 1231 losses from prior years. See instructions . . . . . . . . . . . .

8

Subtract line 8 from line 7. If zero or less, enter -0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule D filed with your return. See instructions. . . . . . . . . . . . . .

9

Part II

. . . . .

(g) Gain or (loss) Subtract (f) from the sum of (d) and (e)

3 4 5 6 7

9

. . . . .

(f) Cost or other basis, plus improvements and expense of sale

. . . . .

(1,100)

Ordinary Gains and Losses (see instructions)

10

Ordinary gains and losses n o t included on lin e s 11 through 16 (i n c lude property hel d 1 year or less):

11 12 13 14 15 16 17

Loss, if any, from line 7 Gain, . . if. any, . from . . line . 7. or. amount . . . . . from line 8, if applicable. . . . . . . .

Gain, if any, from line 31. Net . gain . .or .(loss) . from . . Form . . 4684, . lines . . .

31 and 38a. Ordinary gain from installment sales from .Form 6252, line 25 or 36 Ordinary gain or (loss) from like-kind exchanges from . .

Form 8824 . . .

Combine lines 10 through 16. . . . . . . . . . .

18

. . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

. . . . . . .

11 ( 12 13 14 15 16 17

)

For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and b below. For individual returns, complete lines a and b below.

If the loss on line 11 includes a loss from Form 4684, line 35, column (b)(ii), enter that part of the loss here. Enter the loss a from income-producing property on Schedule A (Form 1040), line 16. (Do not include any loss on property used as an .

18a

b Redetermine the gain or (loss) on line 17 excluding the loss, if any, on line 18a. Enter here and on Schedule 1 (Form 1040), Part I, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . .

18b

employee.) Identify as from “Form 4797, line 18a.” See instructions.

.

.

.

For Paperwork Reduction Act Notice, see separate instructions.

.

.

.

.

.

.

.

Cat. No. 13086I

C:TRP-82 ..

.

.

.

Form 4797 (2022)

C:11-61 671121 Final K-1

Schedule K-1 (Form 1120-S)

20 22

Department of the Treasury Internal Revenue Service

Part III Shareholder’s Share of Current Year Income, Deductions, Credits, and Other Items

For calendar year 2022, or tax year

1

Ordinary business income (loss)

/

/

2

Net rental real estate income (loss)

Shareholder’s Share of Income, Deductions, Credits, etc.

See separate instructions.

3

Other net rental income (loss)

4

Interest income

Ordinary dividends

Part I

/

/

beginning

2022

ending

Information About the Corporation

OMB No. 1545-0123

Amended K-1

35,234

13

Credits

600

A

Corporation’s employer identification number

5a

B

Corporation’s name, address, city, state, and ZIP code

5b Qualified dividends

14

Schedule K-3 is attached if checked . . . . .

6

5,800 5,800 Royalties

15

Alternative minimum tax (AMT) items

Net short-term capital gain (loss)

A

xx-xxxxxxx

Bottle-Up, Inc. 1234 Hill Street City, ST 33333

7

C

IRS Center where corporation filed return

8a Net long-term capital gain (loss)

D

Corporation’s total number of shares

8b Collectibles (28%) gain (loss)

24,333

Center City, ST

Beginning of tax year End of tax year

Part II

.

.

.

.

.

.

.

.

.

.

.

.

1,000 1,000

Shareholder’s identifying number

F

Shareholder’s name, address, city, state, and ZIP code

H

xxx-xx-xxxx

9

Net section 1231 gain (loss)

16

10

Other income (loss)

C

6,250

D

35,000

E

5,000

(550)

Herman Hiebert

Current year allocation percentage .

.

50% %

.

Shareholder’s number of shares Beginning of tax year End of tax year

I

8c Unrecaptured section 1250 gain

Information About the Shareholder

E

G

.

.

.

.

.

.

.

.

.

.

.

.

Loans from shareholder Beginning of tax year .

.

.

.

.

.

.

$

.

.

.

.

.

$

500 500 10,000 5,000

For IRS Use Only

End of tax year

4,500

A

17

11

Section 179 deduction

12

Other deductions

A

4,500

L H

300

Items affecting shareholder basis

300

Other information

*See schedule on next page

250

18

More than one activity for at-risk purposes*

19

More than one activity for passive activity purposes*

* See attached statement for additional information.

For Paperwork Reduction Act Notice, see the Instructions for Form 1120-S.

www.irs.gov/Form1120S

C:TRP-83 ..

Cat. No. 11520D

Schedule K-1 (Form 1120-S) 2022

C:11-61

XX-XXXXXXX

Bottle-Up, Inc. 2022 Form 1120-S

Schedule K-1 Herman Hiebert – Part III, 17, Other information: A $600 Investment income (interest) Investment income [dividends are inv. inc. only to the extent a shareholder A 5,800 elects to tax them at ordinary rates under Sec. 163(d)(4)(B).]

B 300 Investment expenses V 35,234 Sec. 199A QBI (Ordinary income, Line 1) V 325,510 Sec. 199A W-2 wages [($200,000 + $120,000 + $331,020) × 0.50] 187,500 Sec. 199A unadjusted basis of property ($375,000 × 0.50) V

C:TRP-84 ..